The capital was raised through a convertible note issue to a range of Australian corporate and institutional investors.
Lignor, which produces engineered strand lumber and engineered strand board from eucalypts, has been working on the project for about seven years, and hopes to start construction shortly.
The plant, which is due to be commissioned in 2008, will process young eucalypt trees mainly from plantations in south Western Australia, together with forest residues, to produce high strength timber.
Plant output is expected to reach 240,000m3 a year by 2011, and Lignor is currently appointing a number of major distributors locally and overseas to handle the plant’s output.
Lignor’s managing director Glyn Denison, said the company was pleased to have attracted a high level of investors. “This is a very exciting project that adds enormous value to the plantation timber industry,” he said.
