OneFortyOne announces feasibility study for new particle board mill for the Green Triangle

The Board of OneFortyOne Plantations (OFO) has agreed to a feasibility study for the construction and operation of a new particle board mill for the Green Triangle region of south east South Australia.

The decision follows a rigorous independent assessment commissioned by the company, and builds on a previous study undertaken by the Association of Green Triangle Growers (AGTG) in 2014.

The feasibility study will investigate the business and investment case for the greenfield project on land leased by OFO at Tarpeena. It is expected the study will be completed by mid- 2017.

If a decision is made to proceed with the project, it could lead to a significant capital investment of around $150 million to build the new particle board mill to supply domestic and export markets. The new mill could be operational around 2019.

Chief Executive Officer Linda Sewell said the feasibility study reflected the company’s positive view about the long term future for the forestry and wood products industry in the Green Triangle.

Since the closure of a regional pulp mill in 2011 there has been interest from the industry in effective ways to utilise low end fibre and forest residues already available in the region.

The announcement of the feasibility study will enable OFO to discuss the proposal in more detail with government and industry stakeholders to help inform the assessment of its viability.

OFO will continue its normal business based around its existing forestry operations in the Green Triangle while the feasibility study is carried out.

About OneFortyOne Plantations:

OneFortyOne Plantations was established in 2012 to invest in plantations and other timber operations in Australia.

In October of that year the company acquired the harvesting rights of the Green Triangle plantation estate from the Government of South Australia.

The company is owned by Australian and international superannuation or pension funds and is governed by an independent Board.

OneFortyOne is an innovative forest grower certified to the Australian Forest Standard. The OneFortyOne team is committed to growth through investing in long-term sustainable assets and actively adapting to changing market conditions.

In the South-East of South Australia, OneFortyOne has led the establishment of the Association of Green Triangle Growers, bringing together six major growers in the region to develop new processing capacity, which will drive investment and employment growth and build a sustainable local processing industry.