Western Australia's largest timber plantation owner, investment group New Forests, has expanded its holdings by purchasing 12,000 hectares of bluegums from Bunbury Fibre Plantations, a subsidiary of Japan's Mitsui & Co.
The appointment of Sam Walsh as a director of Mitsui & Company this week has brought attention to the usually low-profile Japanese multinational, which according to BNiQ Search Engine data has been a major investor in Western Australia's resources industry and is one of the state's largest exporters.
Higher revenue from an improved woodchip market and a lower dollar has boosted profits at Albany Plantation Export Company, WA Plantation Resources and Bunbury Fibre Exports.
Six years on from the collapse of the big managed investment scheme promoters, stable new ownership and a low currency are boosting the state's woodchip industry, despite the number of plantation hectares remaining almost unchanged.
Increasing demand for hardwood plantation products has boosted the outlook for the much-maligned industry in Western Australia, but whether companies can capitalise on new growth will depend on how much suitable land they can access.
