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Gt Southern, Lignor supply deal

GREAT Southern Plantations Ltd will supply of up to 200,000 tonnes of eucalypt logs a year to the engineered strand lumber plant of unlisted Perth company Lignor Ltd, starting in 2009. This follows the state government’s decision earlier this month to establish infrastructure at the Mirambeena industrial estate north of Albany, where Lignor is planning to build its plant. It has also appointed corporate advisers to work on the crucial fund raising for the project, and has engaged engineering firms WorleyParsons and CPM of Canada to work on the design of the plant. The federal government has provided $2.15 million in seed funding to supplement the funds invested by Lignor shareholders. Logs will be trucked into Mirambeena from the many local blue gum plantations and from Manjimup/Pemberton from forest residues. The final manufactured products will be prepared at the plant and railed to Perth for dispatch to eastern states markets and exported from Fremantle.

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