Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Restructuring of Southern Cross Forest Products

24 April 2014

Restructuring of Southern Cross Forest Products

The receivers of Southern Cross Forest Products (SCFP) announced today a restructuring of the South Island businesses.

Receiver, Brendon Gibson from KordaMentha, said: “It is no secret that the company has long struggled to secure sufficient log supplies to feed its South Island mills. That issue has continued to compromise trading in the receivership but performance has now been further affected with fire damage at the Mosgiel mill. The moulding plant at the Mosgiel mill remains open but due to constraints in drying, the company is now only capable of processing lower volumes of timber.”

A fire at the Mosgiel site in the early hours of Friday 11th April caused significant damage. The fire burnt out an electrical system, shutting down kilns and boilers and massively reducing drying capacity for the company.

“Unfortunately, we now have no choice but to close one site – the Rosebank sawmill – to stabilise productivity at the remaining sites. Regrettably, this will mean job losses which we had worked hard to avoid. However, the restructuring will allow the core business to be maintained while the sale process continues,” Mr Gibson said.

The Millstream sawmill will remain operational and the Mosgiel site will continue to service and supply the core United States’ solid wood moulding business.

The receivers are also winding down the SCFP Australian business and exploring options to realise the investment in that business.

“The Australian business has never been profitable. Following a review of the options it was clear that the Australian business cannot be sustained,” said Mr Gibson.

In total, 79 jobs will be lost across the South Island sites.

“Our focus remains on trying to sell Southern Cross Forest Products as a going concern. The restructuring in the South Island does not affect the Thames plants,” Mr Gibson said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news