Te Wera forest agreements secures growth for Taranaki
Friday 16 Nov 2018
“This is exactly the sort of cooperation we need to see between our overseas-owned forestry companies and New Zealand sawmills,” Forestry Minister Shane Jones says. “I’m pleased that China Forestry Group NZ and Taranakipine have been able to reach this agreement and I commend both parties for their commitment to our forestry sector – for regional development and employment benefits.”
The agreement will see China Forestry Group NZ supply minimum monthly volumes to Taranakipine over the long term and at agreed pricing. Te Wera forest is very steep in parts, requiring specialist equipment and personnel. So, to help with harvesting, China Forestry Group NZ negotiated an agreement with Northland harvesting company Stokes Logging to relocate part of their crew capacity and business to Te Wera.
“The partnerships with Taranakipine and Stokes Logging are a material demonstration of China Forestry Group NZ’s ongoing commitment to New Zealand and how forestry owners and local processors can better work together,” says Steve Walker, Chief Operations Officer of China Forestry Group NZ.
China Forestry Group NZ will underwrite the cost of Stokes Logging relocating with a take-or-pay commitment to 100,000 tonnes per year for seven years, to December 2026. This commitment will see a number of families move to Taranaki with their moving costs covered by China Forestry Group NZ.
“These agreements are based on mutually beneficial commercial outcomes. At the same time, we appreciate that we have an important role to play in the New Zealand forestry industry as a supportive and understanding partner to local operators and as kaitiaki of the natural and cultural resources entrusted to us,” Steve Walker says.
Photo: L to R: Hon Shane Jones, Minister of Forestry, Te Kapunga Dewes, CEO PF Olsen, Tom Boon, CEO, Taranakipine, Steve Walker, COO, China Forestry Group
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