Great Southern Ltd has announced plans to acquire A$47.3m-worth of timber assets from Pulpwood International Pty Ltd.
Under the deal the Australian agri-business management firm will purchase 14,700ha of hardwood and a 50% stake in Pulpwood International’s Banbury woodchip mill.
Great Southern’s managing director John Young said that the deal was based on growing international demand and would allow the company to facilitate future growth.
“With global demand for hardwood woodchip, Great Southern is ideally placed to capitalise on oportunities today and into the future,” said Mr Young.
“As these plantations reach maturity we will continue to seek further opportunities to deliver enhanced value for shareholders throughtprocessing and other means.”
According to Mr Young, the acquisition gives Great Southern over 200,000ha of plantation across seven Australian regions.
