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Press release- New Sawmill at Sao Hill Industries, Tanzania.

New Sawmill started up at Sao Hill Industries, Tanzania.

Tanzania, 6th July 2012: Sao Hill Industries (SHI), a subsidiary of Green Resources AS, started up a new HewSaw sawmill in June 2012. This is the result of a four year, USD 10 million industrial investment project. 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.

 

More information and photographs available here or www.greenresources.no

Background

Green Resources is Africa’s leading forestation company and a leader in East African wood manufacturing.  The company was established in 1995 and is a private Norwegian company with 80 shareholders. The company currently has 23,000 ha of forest in Tanzania, Mozambique and Uganda and operates East Africa’s largest sawmill and its largest electricity pole plant.  In 2010 and 2011, it added additional processing capacity by opening a pole plant in Uganda.  Green Resources is also one of the first companies to receive carbon revenue from its plantation forests.  It employs over 4,000 people and has invested USD 120 mn in the African operations since its inception.  Green Resources aims to establish over 100,000 ha of plantation to serve both the growing regional and global demand for wood products.  Its strategy is based on growing wood for both traditional uses (lumber, chips, pulp, etc.) and for the growing bio-energy sector. 

Contacts:

Roselyne Mariki, Executive Director, Green Resources, Tel: +255 714 493 606

Nick Moore, General Manager, Sao Hill Industries, Tel: +255 719 092 822

Aadu Polli, Industrial Director, Green Resources, Tel: +255 719 239 854

Email: firstname.lastname@greenresources.no