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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news