Sao Hill Industry’s (SHI), a subsidiary of Green Resources AS, started up a new HewSaw sawmill on the June 2012. This is the result of a four year, USD 10 million industrial investment project at SHI. More than three quarters of the 30 year old sawmill have been renewed, increasing sawing, treatment and kiln drying capacity, and as a result, the production capacity has tripled.

The state of the art mill is budgeted to produce 60,000 m³ timber in 2014, out of a total forecast production of 84,000 m³ at SHI. The mill is believed to be Africa’s largest sawmill outside of South Africa. It has a production capacity of 3x the budgeted volume with minor de-bottlenecking in the timber sorting area and 3 shift operations. Production is set to increase over time, providing significant upside potential for the company. The new HewSaw will produce the best quality timber in East Africa and is well equipped to satisfy customer demand in the fast growing regional market, as well as starting selective, high value overseas export.

Importantly, the utilization of the wood resources will improve through better yield. The new sawmill will enable SHI to saw smaller dimension timber, down to 10cm diametre compared to previous 14cm, and provide a sawmill recovery rate of 45% for a 16cm log, compared to previous 35%. The new sawmill is particularly well suited for sawing thinning from Green Resources’ own growing forest. The mill is fitted with oversized motors such that it can saw hardwood timber, improving the utilisation of the eucalyptus log harvest and provide industrial quality supplies of hardwood timber for joinery products.

The new sawmill, kiln and value added investments will produce high quality raw material for the Tanzanian building and furniture industry, enabling these industries to compete effectively in the regional market and help replace imported products. The Tanzanian furniture industry will for the first time have access to kiln dried world class softwood timber, and 1000s of new ‘downstream’ jobs are likely to be created.

Click here for a pictorial guide of Sao Hill Industry's new sawmill.

For more information please contact:

Roselyne Mariki, Managing Director Green Resources, Tanzania (roselyne.mariki@greenresources.no)

Mads Asprem, CEO Green Resources AS (mads.asprem@greenresources.no)

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