Carter Holt Harvey (CHH) yesterday announced it had signed an agreement to purchase Chinese premium panels manufacturer Plantation Timber Products (PTP) for $US134 million.
PTP is a world-class manufacturer of speciality medium density fibreboard (MDF) and flooring products, drawing on sustainably managed plantation timber to service the high growth domestic Chinese furniture, flooring and panels markets.
Chief executive officer Peter Springford said the acquisition was consistent with the company's growth strategy and a positive step into a market well known to Carter Holt Harvey.
"The acquisition of PTP is part of Carter Holt Harvey's commitment to growing its wood products segment in Australia, New Zealand and Asia. It is a clear demonstration of our 'multi-domestic' approach, giving us immediate scale and in-market processing close to our important Chinese customers."
"This is a considered move, coming after 12 months of 'on the ground' assessment and extensive due diligence.
"Carter Holt Harvey has served the Chinese market for more than 25 years, exporting log, pulp, paper and wood products from both Australia and New Zealand. In addition, we already operate representative offices in Shanghai, Beijing and Hong Kong," Mr Springford said.
PTP employs approximately 1700 people and operates a country-wide network of eight regional sales offices and twenty-six warehouses.
The company's two primary facilities at Leshan and Shishou in central China have a combined MDF capacity of 350,000 cubic metres, increasing Carter Holt Harvey's focus on speciality MDF and expanding its existing MDF capacity by more than fifty per cent.
Carter Holt Harvey intends to finalise the purchase in July.