UK sawmilling giant BSW Timber plc is to sell the trade and assets of its harvesting operation, BSW Harvesting, to Tillhill Forestry Ltd.
Heads of agreement have been signed and the sale, for an undisclosed sum, is expected to be complete by the end of December. All employees will then transfer to Tillhill.
BSW currently harvests more than 1.2 million tonnes of trees per year.
Sandy Brownlie, chairman of BSW Timber, said: ‘The strategic relevance of owning a harvesting operation is no longer valid to the group and its sale will enable us to focus on our core business, namely sawmilling in the UK and Continental Europe.
‘The sale will allow us to continue to achieve our objectives for log procurement of quality, security and continuity of supply and service.’
The company said a big increase in timber supply expected over the coming years meant it was not necessary to have a harvesting operation. Tilhill, part of UPM-Kymmene, will be a major supplier of logs to the group.
Matthew Rivers, managing director of Tilhill Forestry Ltd, described BSW Harvesting as the UK’s most professional and well-established harvesting organisation and said it would complement its services to woodland owners.
He said: ‘There are significant challenges in realising the best outcome for private growers from their maturing tree crops and Tilhill will now be able to assist this process more directly.’
BSW Harvesting is the contracted agent for harvesting and marketing of the Timber Marketing Group‘s timber. The group welcomed news of the sale and said members were set to benefit from the agency contract changes.
