SFM wins major forest management contract

Friday 15 May 2020

 
Tasmanian-owned and operated company SFM is pleased to announce it has been appointed by New Forests to manage the timber plantation assets purchased from Norske Skog after a competitive tender process. Now to be called Lenah Estate Pty Limited, the Tasmanian plantations were bought by Australian based international forestry investor New Forests, on behalf of its Australia New Zealand Forest Fund 3 (ANZFF3), from Norske Skog in February this year.

“We are delighted to win this contract to manage such an extensive and quality resource that supports the Boyer mill, the Derwent Valley and wider Southern Tasmanian community and local farmers,” SFM Managing Director Andrew Morgan said. “SFM has a strong track record in plantation management, having multiple management contracts interstate, so to be successful in our home state is very gratifying,” Mr Morgan said.

The Lenah Estate land area under management by SFM is approximately 27,150 hectares across South Central Tasmania, predominantly the Derwent Valley. It includes 50 joint venture plantation projects with private landowners and Sustainable Timber Tasmania (STT).18,000 hectares or 97.5% of the 18,500 plantable hectares is radiata pine softwood plantations. Around 350,000-400,000 tonnes will be harvested annually, with the majority going to the Norske Boyer mill.

Lenah Estate will replant 500-1000 hectares per year. SFM will open an office in New Norfolk employing a core team of 8 full-time employees, supported by the broader SFM business with more than 20 FTE employees and over 100 FTE sub-contracted truck drivers, plant operators and support services.

SFM currently manages two plantation projects for New Forests, consisting of both hardwood and softwood species across three States – WA, SA and Victoria. Lenah Estate will be a significant addition to the SFM portfolio, which includes harvesting, haulage and export of more than 500,000 tonnes of plantation timber per annum. Hydrowood, a world-first operation, salvaging Tasmanian specialty timbers standing underwater for decades, is a wholly owned subsidiary of SFM.

Photo: SFM Managing Director Andrew Morgan (left) with SFM Director, David Wise


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