VicForests post loss after drop-off in wood salesA more than 20% cut in timber intake at the former Gunns Ltd. Heyfield sawmill in Victoria, Australia, was a key factor in VicForests losing AU$96,000 in its 2011-2012 fiscal year, reported The Sydney Morning Herald on 15 September. The Heyfield situation caused a 17% decline in the total volume of sawlog and pulpwood sold by VicForests, said CEO Robert Green.
The losses also were attributed to such factors as the weak economy, a decline in new housing starts, a high Australian currency, and competition from cheap timber imports. In addition, VicForests spent AU$3.1 million in legal costs to fight green groups.
However, the 2012-2013 fiscal year is expected to show improvement due to the settlement of pricing issues with major customers, a more stable customer base, and a 10-year tender to buy and process about 800,000 tonnes/year of residual hardwood lumber, said Green. For more information click here.
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