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

 

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news