Fletcher Forests is to separate its forest ownership activities from its added value processing, marketing, distribution and forest management activities.
The change is expected to reduce the capital employed in the company’s forests by channelling external investment into forest estates. Surplus capital will be returned to shareholders.
The company will increase its focus on improving margins at the value-added processing, marketing and distribution segments of the value chain and although details of the split are yet to be finalised, the matter is proceeding with urgency.
