Govt approves big sale of logs to C.S.R.-Baigent group

Press, 29 October 1981, Page 3

Govt approves big sale of logs to C.S.R.-Baigent group

Wellington reporter The Government has approved the sale of more than 2.7 million cubic metres of logs from State forests in the Nelson district. The bulk of the sale, 2.3 million cubic metres of sawlogs and pulp logs, has been awarded to the C.S.R.Baigent consortium for its planned integrated sawmill and mechanical pulpmill at Eves Valley.

The sale is for 10 years with a right of renewal for a further five years, said the Minister of Forests (Mr V. S. Young) yesterday.

A smaller allocation of about 500,000 cubic metres of peeler logs has been awarded to a' West Coast company, Aorangi Forest Industries, Ltd.

Mr Young said that the sale allowed a competitive, export-oriented industry to be established in Nelson.

“The sale will undoubtedly boost regional development and job opportunities.” he said.

“More than 300 people will be needed for the construction of the project and a further 500 people will be employed once the complex is working. At present Baigents employ about 380 people, so the new project will be a substantial employment boost.

"As well as those directly employed by the project, the increased demand for local goods and services will also generate more jobs.” Mr Young said. Wood from both private

and State forests will be used to supply the new project. Baigents will use wood from their 17,000-hectare radiata pine resource in Nelson. “The project is an example of a joint venture between a New Zealand company and its Australian partner, taking advantage of the skills and resources of both.” Mr Young said.

Baigent and Sons, of Nelson. is a family-owned forestry and sawmilling business, at present exporting logs, chips, and sawn timber as well as supplying the New Zealand market.

C.S.R., Ltd, is a large, diversified Australian company whose activities include building materials, energy, minerals, chemicals, sugar, and pastoral products.

“Award of the wood tender to C.S.R.-Baigent will allow further processing within New Zealand rather than the export of unprocessed logs,” Mr Young said. Export- earnings in the first year are estimated to be more than $7O million.

The sale of peeler logs to Aorangi Forest Industries, Ltd, will be used to produce plywood for domestic use and for export to Australia and South-East Asia. The sale would ensure that the best quality pruned logs from the State forest would be used for high-grade end uses such as veneer. Mr Young said.

The Government allocation of timber to the C.S.R.Baigent consortium was welcomed yesterday by the project leader. Mr Ken Stacey.

and Baigent’s managing director. Mr Brian Wall, the Press Association reported. Mr Stacey and Mr Wall said that the award of the wood tender was the main outstanding approval required for the project to go ahead.

The allocation represents 83 per cent of the total 2.7 million cubic metres of timber offered for sale.

Messrs Stacey and Wall said construction was planned to start early next year, taking two years.

The $l5O million mill still needs ratification by the Overseas Investment Cornmission and the Examiner of Commercial Practices, g A firm power supply contract is also still to be signed. C.S.R.-Baigent plans to build a complex of 58,000 cubic metres annual capacity integrated with a mechanical pulpmill of 104,000 tonne capacity.

“The total pulp output will be marketed overseas with the main markets being in the Asian region. The majority of the lumber will also be exported, to Australian and Asian markets.” Messrs Stacey and Wall said.

They said market opportunities were encouraging. “There is a regional imbalance in the supply of wood fibre in the Pacific region, particularly supplies of softwood for paper making.

"Countries deficient in wood fibre such as Japan. Taiwan, and Korea with big domestic paper manufacturing industries have large and growing softwood import requirements."