Pentarch Forestry has strengthened its position in the New Zealand woodchip market after it acquired a 30% stake in Marusumi Whangarei Limited. The latest acquisition, which will see Nippon Paper Resources Australia take 70% of the business later this month, comes after Pentarch sold out of its interest in NSW-based Highland Pine Products and the Swifts Creek mill in Victoria, before moving to acquire Superior Wood in Queensland and stepping in as a white knight for the former AKD mill in Yarram, Victoria. At the same time, it is negotiating with the NSW government over its hardwood contract on the Mid-North Coast.
Under the terms of the agreement, the company will be rebranded as NP Wood Fibre Company Limited and operated as a formal joint venture between the two partners. And for Nippon Paper, the move represents a major step in its long-running effort to diversify procurement and secure a stable softwood supply for the Japanese pulp and paper sector, while also looking further abroad for new markets across Asia.
NP Wood Fibre exported more than 220,000 GMT of radiata pine last year
Marusumi Whangarei, founded in 1995 as a joint venture between Marusumi Paper and Marubeni Corporation, has been a key supplier of softwood chips to Japan for decades. Its Whangarei operation includes a chip mill and port‑side handling facilities, and Marusumi Paper exported more than 220,000 GMT of radiata pine chips last year.
“NP Wood Fibre Company Limited will operate a major New Zealand softwood chip production and export business, leveraging the country’s abundant forest resources and positioning itself to meet the anticipated growth in global demand for softwood chips,” Nippon Paper said in a statement last week. “For NPI, the transaction supports the diversification of procurement sources and the establishment of a stable supply of softwood resources for the Japanese market.”
“In collaboration with Pentarch Forestry, NP Wood Fibre will also market softwood chips across the Asian market, thereby enhancing the revenue potential of the Nippon Paper Group’s timber-related businesses. Furthermore, NP Wood Fibre will combine the Nippon Paper Group’s expertise in hardwood plantation management, woodchip production and export operations in Brazil and Australia with Pentarch Forestry’s capabilities across lumber, woodchip and other timber-related businesses.”
Wood Central understands that NP Wood Fibre will continue operating in the Whangarei area of New Zealand’s Northland region, retain its current staff, and maintain its focus on producing and exporting radiata pine chips for pulp and paper manufacturing.
