Workers face 'uncertainty' as Nelson Forests announces plan to sell

Thursday, 22 June 2017

Nelson Forests has announced it will be marketed for sale later on this year.

Hundreds of employees at Nelson Forests are facing an uncertain future as the company announces it will be put up for sale.

The forestry company, which owns and operates significant forest and sawmill assets across the top of the south, will be put on the market some time later this year.

The Kaituna Sawmill in Blenheim is included in the sale of Nelson Forests.

The company is owned by investment funds which are advised by Global Forest Partners, based in the United States.

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Nelson Forests managing director Lees Seymour said the announcement would 'potentially create some uncertainty' for staff.

'Change creates uncertainty. You don't know what the future holds.'

However, he said the business was sustainable and will continue to operate in a 'business as usual mode' throughout the sale process.

'It's in good shape. We've got skilled and committed staff. Our average service is something like 18 years.'

Lees said it was common for forestry companies to change hands.

'This is kind of a normal cycle for the business. Investors invest for a certain period of time and choose to exit or choose to stay.'

Nelson Forests is managed locally by Nelson Management and its assets include 78,000 hectares of forests estate and the Kaituna Sawmill near Blenheim.

While there was no knowing what the new owners would do with the company, Lees said history suggested they would stick with the same management team.

'No matter who owns the business they still need a good management team.

'What our experience has been in the past is they've kept with the management team and kept working with them to enhance the business. I don't expect anything will be different this time.'

The company will be sold in an 'international auction', Lees said.

The sale comes after Japanese company Sumitomo bought out Hancock Forest Management's 30,000 hectares of Nelson region pine forests in a $370 million deal in 2015.

Nelson Forests directly and indirectly employs about 550 people across the top of the south.