As part of the mutually beneficial deal, SDL Sawmills will take on the site and existing staff and continue with full scale milling activities. With an offtake agreement, Premier Forest will continue to supply the finished sawn products from the mill to their existing, diverse customer base.
Premier Forest will buy all of SDL's sawn products, fencing materials, fence panels, sleepers, pallet wood and sawn timber to secure consistent, continual supply for their customer base and to fulfil market demand.
“This deal is perfect for SDL, Premier Forest and our customers, who will continue to receive uninterrupted supply of our respective products,” said Terry Edgell, co-founder & CEO of Premier Forest Products.
“We are building on a strong partnership while making the most of the core capabilities and supply chain of each business; SDL’s in sawmilling and fulfilment of increasing demand for biomass products, and Premier Forest’s in supplying value-add, sawn timber products to the construction and merchanting sectors. It’s a great fit.”
Sam Launchbury, Founder and CEO of SDL said by purchasing the sawmill and recently building an in-house harvesting team, SDL was now able to complete the circle from purchasing standing trees and milling, to generating heat and power which is then used to convert sawmill bi-product into a renewable energy fuel.
