Winstones buys forest

Ruapehu Bulletin, Volume 6, Issue 304, 12 September 1989, Page 1

Winstones buys forest

The ten thousand hectare Waimarino Forest has been bought by Winstones Pulp Industries and with it the viability of the Karioi Pulp Mill is assured, says Winstones Managing Director Klas Kronqvist.

The forest of radiata pine between Raetihi and Pipiriki, the first plantings of which were done in 1978 by Winstones Afforestation, was sold to Winstones by Fletcher Challenge. The forest and the mill had been sold by Brierley's to Fletcher Challenge, who first sold just the mill to the Hong Kong investment group Perfect Match. This last sale bings the forest's ownership full circle.

Winstones General Manager Klas Kronqvist said last Thursday the purchase has secured a supply of trees for the Karioi Pulp Mill. "We are happy to take on the forest for the long term viability for the mill from a resource point of view."

He said Winstones needs to look at the management of the forest now. "For a small company like Winstones we need the most effective. effi-

cient strategy put in place to manage the forest." He said with planting work falling away now the forest was entering a maintenance period until the trees mature. The government is not providing any incentive Turn page 2

Forest sold

From page 1 to plant new areas, he said. The trees were planted to supply pulp wood for the mill and will take another ten years to reach maturity for this use. Winstones are to investigate the viability of pruning some of the trees for saw logs. This could see some trees milled with the lower part being used for saw logs and the upper part being used for pulp. If used, this method would see the trees not ready for harvesting for 10-15 years. Mr Kronqvist said though the forest was established with the aim of making the Karioi mill self sufficient in wood resources, because of mill expansions the forest would not now be adequate. He said however, that it was better to get pulp wood from a number of sources such as farms and govemment land. "We shouldn't put all our eggs in one basket," he said. The company is now investing to improve productivity and quality to make the mill competitive on the world market. There are a number of similar mills now coming on stream around the world to compete against Karioi. Mr Kronqvist said the company is happy with the financial results over the recent past but that the present market situation is of concern. "It is important we do well on quality and we can't afford disruption on the waterside." He said the watersiders can't continue to be a privileged class, working and average 27 1/2 hour week while paid for 40 hours. He said the company was continuing to look at shipping pulp through Wanganui and that it is technically possible, with the port

bar now dredged to an adequate depth. The problem is now tied to chartering ships and finding backloads. "But we will get there," said Mr Kronqvist.