Advertorial

BUSINESS NEWS - The merger of PG Bison's Southern Cape sawmilling operations with MTO Forestry Southern and Eastern Cape operations to create a new company, Cape Forests Products, resulted in a more sustainable timber and sawmilling industry in the Southern Cape.

The devastating fires in recent years have severely impacted the forestry and sawmilling operations in the area, and it would take several years for operations to recover to pre-fire levels. As a result, the various businesses were operating at suboptimal levels.

The CEO of the newly formed Cape Forests Products, Greg Woodbridge, says: "This merger heralds an exciting new dawn for an industry that is so important to the region in terms of sustaining jobs."

Cape Forests Products will employ over 2 500 forestry and sawmilling people in the region, directly and indirectly. "Our customers are situated predominantly in the Western, Southern and Eastern Cape. The merger means we can offer them a more reliable source of supply and a wider variety of quality products from our various operations."

Cape Forests Products will consist of PG Bison Southern Cape's c. 10 200ha of forestry plantations, the Thesen Sawmill in George and its Woodline pole plant in Great Brak River, and MTO Forestry's c. 31 700ha of leased forestry plantation and sawmills in George and Longmore.

"The merger has created a significant black-controlled business in the forestry and sawmilling industry with increased production and reliability of sawlog supply, improved efficiencies and sustainable sawn timber supply, all of which will encourage further investment and enhanced competitiveness," says Woodbridge.

The merger is subject to the Competition Commission's approval.

For further information, contact investors@kap.co.za.

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