AUSTRALIA - AUSTRALIAN FOREST INDUSTRIES ON EXPANSION PATH (29.06.05)
Australian Forest Industries, the Australian sawmill company, revealed that it expects revenues to reach $17 million in 2005. This follows the recently filed 2004 figures that show that customer receipts increased 14.6% to $15,342,971 for year ending 31st December 2004. The targeted revenue growth results in part from its recently increased sawing capacity which was expanded by 38% to 165,000 cubic meters per year following the installation of a new sawlog line at its Canberra facility in Q4 2004. Furthermore, the business has just commissioned an industry leading timber treatment facility. Michael Timms, Chairman and CEO of Australian Forest Industries, commented: "We now have the key building blocks - and contracts - in place to create a significant business that can equal - if not better - the operating performance shown by the large capital, high growth forestry companies in the industry. We are excited by the opportunities that the business currently has at a time when domestic and Asian demand for timber continues to rise." Australian Forest Industries is a leading sawmill and timber company based in Australia. It currently operates a major softwood sawmill and timber treatment facility based on a 78 acre site outside Canberra, ACT. Through its subsidiary, Integrated Forest Industries, it also holds a key 20 year contract with the government of New South Wales which grants the business wood supply from the Bombala forest, equal to approximately 300,000 cubic meters of wood a year. The Bombala forest represents one of the last unexploited softwood plantation forests in Australia.
Michael Timms also said that "With the market for softwood set to continue rising over the next 35 years, we believe the timing is right to develop a second complementary sawmill facility in the Bombala region. We likewise believe the timing is right to expand our industry leading timber treatment facilities at Canberra to meet local demand for termite resistant construction wood following the recent change in legislation in Australia."