I wouldn’t normally go near a phrase from those mid-Atlantic management training books packed full of “inspirational” platitudes and up-and-at-’em soundbites. But, a group of businessmen planning a spectacular forest products industrial estate in Scotland do, in the words of those books, seem to have “dared to dream”.
The project involves the construction in Invergordon of a sawmill, pulp and paper plants and a wood-fuelled power station.
So far the consortium has raised something over £200,000. To say that is seed capital is an understatement. The whole scheme will cost an estimated further £999,800,000!
But while there’s a way to go, the group insist that their £1bn dream can become reality. They claim extensive experience in the forest products sector and say that their plans have a fundamental logic. Underpinning the project is the rising volume of softwood coming out of UK forests. All this needs to find markets and clearly it’s best that it finds as many as possible to avoid swamping one sector. It’s also obviously preferable that the wood has as much value added as possible. In that light, the Scottish plan to have several plants on one site makes sense, enabling synergies between facilities and ensuring that each bit of timber is directed to the best end use.
Also this week we report on further expressions of optimism in the future of the UK timber and wood products markets with more immediate investment proposals: £100m at Egger, £4m at Finnforest and £100,000 at M&M Timber.
Whether the Invergordon project will follow these in successfully raising the cash it needs remains to be seen. At a time of, hopefully temporarily, fragile business confidence, private investment will need persuasion. But devolved, national and EU governments all seem keen to back forest products projects as part of their drive for sustainable development and, where their money flows, private capital tends to follow. If it does work out, the consortium should be able to write one of those management books of their very own.
