TIM 0.00% 4.4¢ timbercorp limited

forms woodchip export

  1. 1,035 Posts.

    HOMEX - Melbourne

    Timbercorp Limited is pleased to announce that it has formed an
    export woodchip marketing company together with another major
    eucalypt plantation developer and manager, Integrated Tree Cropping
    Limited (ITC).

    The company, Plantation Pulpwood Exports Pty Ltd (PPE), will market
    woodchips from the Eucalyptus globulus and E grandis plantations
    managed by the two companies, at present totalling 167,000 hectares.
    The combined estate represents Australia's largest plantation
    hardwood resource and is a major resource an the global market.

    PPE will provide significant economies of scale in servicing
    international markets as demand continues to grow strongly for
    plantation-sourced eucalypt woodchips. It will also assist in
    rationalising the export marketing of wood from the Australian
    hardwood plantation industry by combining the resource of two major
    plantation managers.

    An ABARE report in August 2002 forecast Australian export woodchip
    sales to rise 20 per cent by 2010 principally from hardwood
    plantations grown by companies like Timbercorp and ITC.

    Pulp and paper manufacturers, principally in Japan and China, are
    keenly seeking Eglobulus chips for their fibre yield, quality and
    environmental advantages over fibre sourced from natural forests.

    PPE is at an advanced stage in negotiations with Japanese pulp and
    paper manufacturers to enter contracts for wood from Timbercorp and
    ITC plantations in Western Australia.

    Timbercorp and ITC are also in an advanced stage of negotiation to
    lease a site at the port of Albany, WA, for the establishment of
    stockpiling and loading facilities. The companies aim to establish an
    independent woodchip export facility at Albany in the coming year.

    Timbercorp has already commenced construction of stockpiling and
    loading facilities at a site it leases at the port of Bunbury, WA.
    This will be operational next month, receiving woodchip currently
    being harvested and processed using the company's new in-field
    chipping system in the south west of WA.

    Timbercorp manages 74,000 hectares of eucalypt plantations in WA and
    the Green Triangle area of south-western Victoria and south-eastern
    South Australia. ITC has under management its own plantations plus
    those of Australian Plantation Timber Limited in WA, the Green
    Triangle and Queensland.

    These plantations combined are expected to yield more than 40 million
    tonnes of woodchips with an export value of $3.5 billion over the
    next decade.

    For further information, contact:

    Robert Hance, CHIEF EXECUTIVE OFFICER on 03 8615 1200
    John Vaughan, EXECUTIVE DIRECTOR on 03 8615 1200

    I hold GTP & TIM

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