The merger of PG Bison’s Southern Cape sawmilling operations with MTO Forestry Southern and Eastern Cape operations to create a new company, Cape Forests Products, creates a more sustainable timber and sawmilling industry in the Southern Cape.
The devastating fires in recent years have severely impacted the forestry and sawmilling operations in the area and it would take several years for operations to recover to pre-fire levels. As a result, the various businesses were operating at suboptimal levels.
CEO of the newly formed Cape Forests Products, Greg Woodbridge, says: “This merger heralds an exciting new dawn for an industry that is so important to the region in terms of sustaining jobs.” Cape Forests Products will employ directly and indirectly over 2,500 forestry and sawmilling people in the region. “Our customers are situated predominantly in the Western, Southern and Eastern Cape. The merger means we can offer them a more reliable source of supply and a wider variety of quality products from our various operations.”
Cape Forests Products will consist of PG Bison Southern Cape’s c. 10,200 hectares of forestry plantations, the Thesen sawmill in George, and their Woodline pole plant in Groot Brakrivier, and MTO Forestry’s c. 31,700 hectares of leased forestry plantation and sawmills in George and Longmore.
“The merger has created a significant black controlled business in the forestry and sawmilling industry with increased production and reliability of sawlog supply, improved efficiencies and sustainable sawn timber supply, all of which will encourage further investment and enhanced competitiveness,” says Woodbridge.
The merger is subject to Competition Commission approval. For further information, email az.oc.pak@srotsevni.
