Southern Cross Forest receiver to close sawmillFriday 2 May 2014 The receiver for NZ company Southern Cross Forest Products plans to shut one of the failed wood processor’s sawmills and wind up the unprofitable Australian business as it continues to find a buyer for the business. Southern Cross Forest Products had three mills in the South Island and one in Thames, and today’s restructuring will result in 79 jobs being lost.A fire at the company’s Mosgiel mill cut drying capacity, reducing capacity to process timber, KordaMentha’s Brendon Gibson said in a statement. To stabilise productivity across the group the receiver will close a sawmill at Rosebank, and Gibson said 79 jobs will be lost across South Cross Forest’s South Island sites. Thames, and today’s restructuring will result in 79 jobs being lost. “It is no secret that the company has long struggled to secure sufficient log supplies to feed its South Island mills,” Gibson said in a statement. “That issue has continued to compromise trading in the receivership, but performance has now been further affected with fire damage at the Mosgiel mill.” Thames, and today’s restructuring will result in 79 jobs being lost. Gibson said South Cross Forest’s unprofitable Australian business will also be wound down, and he is exploring options to realise the investment in that business. Thames, and today’s restructuring will result in 79 jobs being lost. “Our focus remains on trying to sell Southern Cross Forest Products as a going concern,” Gibson said. “The restructuring in the South Island does not affect the Thames plants.” More >>. |
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