| Wed 13 Nov 2002, 15:32 | | Yorkcor Acquires Bluechip Assets |
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Yorkcor Acquires Bluechip Assets
York Timber Organisation Limited
Share Code : YRK
ISIN Code : ZAE000008108
JSE-listed Yorkcor has acquired the assets of two established sawmills in the
Piet Retief area of Mpumalanga for R 6,45 million.
On 11 November 2002, the Master of the High Court consented to the disposal of
the land and buildings and complete plant and equipment of two lumber milling
companies in liquidation, Bluechip Timbers Mpumalanga (Pty) Ltd and Bluechip
Industrial Timbers (Pty) Ltd, to Yorkcor operating subsidiary York Timbers Ltd.
Creditors had approved York`s bid of an all-in consideration of R6,45 million,
plus VAT, for the assets. "We are delighted with the transaction," said Yorkcor
chairman Solly Tucker. "Much of the plant is in excellent condition and, at
today`s rates of exchange, would cost over R100 million to replace after
commissioning. The low cost of acquisition gives us a significant competitive
advantage.
"The acquisition complements the sawmilling activities of York Timbers.
Strategically, it also opens the way to exciting growth prospects for Yorkcor,
especially in the scramble for the state`s forestry assets in Mpumalanga which
are still to be privatised."
These state assets are part of the "Komatiland" forests, and the Government is
expected to issue invitations to make offers shortly. The two sawmilling
operations acquired by Yorkcor are already in sound running order and are
strategically placed in a number of respects. In terms of location, they are
amongst the closest to the most important markets, Gauteng and KwaZulu-Natal.
The acquisition will boost the group`s capability to add value to, and to
compete for, the valuable Komatiland forests located in that vicinity.
Yorkcor played a significant role in backing the consortium of Paharpur Cooling
Towers of India in the first bidding process for the Komatiland forests. That
bidding process was scotched by the authorities on account of breaches of good
governance revealed in official enquiries. The new process has still to be
initiated and the delay has irked would-be competitors. Tucker says that he
will leave for Calcutta later this month to consult with the leadership of
Paharpur and other would-be players. Paharpur has yet to decide to undertake the
rigours of a re-bid.
Yorkcor has renamed the larger and more modern mill near Amsterdam, "Roburnia
Forest Products", after Scottish poet Robert Burns. A nearby well managed
SAFCOL softwood forest, soon also to be privatised, is also called "Roburnia":
(Parts of Piet Retief, established 115 years ago, were known to settlers also as
"New Scotland").
The other sawmill near Lothair will operate and trade as "Golden Rhino Lumber".
The locality has an ancient spiritual relevance for the local communities. "We
are working on plans to give the neighbouring communities a meaningful stake in
the industry of Golden Rhino Lumber. They have a strategic role to play in
developing the timber processing enterprise and of creating much needed job
opportunities in the region," says Tucker. "Yorkcor is committed to developing
a capability to launch and nurture empowerment participation in lumbermilling
concerns."
Apart from the virile Scottish heritage, an enduring contribution has been made
by German settlers whose descendants are prominent achievers in the Piet Retief
area, especially as timber farmers. "Yorkcor will focus attention on cultivating
mutually rewarding relationships with these growers", says Tucker. "On the whole
they were rather shabbily treated by the previous management running the
sawmills and many lost money in supplying good timber on credit to the previous
operators. We aim, as a priority, to restore confidence in sawmillers as
customers, and tree growing as a business, amongst these growers," he asserts.
The two sawmills have not operated since the Bluechip companies were put into
liquidation. Yorkcor is planning to fast-track their re-opening as Roburnia
Forest Products and Golden Rhino Lumber in the first quarter of next year. "Due
to the good condition of the plant and equipment, we expect the acquisition to
provide a positive contribution to Yorkcor during 2003," concludes Tucker.
Ends
ISSUED FOR : Yorkcor Limited
CONTACT : Solly Tucker 012 804 9730 Cell: 082 579 0717
FAX NO : 012 804 8611
E-MAIL : Sol@yorkcor.co.za
WEBSITE : www.yorkcor.co.za
ISSUED BY : TISH STEWART PR ASSOCIATES
CONTACT : Tish Stewart (011) 325 4195 Cell: 082 443 6399
FAX NO : (011) 325-4199
E-MAIL : Tish@tspr.co.za
DATE : 13 November 2002
Date: 13/11/2002 03:23:49 PM Produced by the JSE SENS Department
