About Willmott Forests Limited
Introduction
Willmott Forests is a publicly listed (ASX Code: WFL) and quality accredited company. Our core activities are establishing, managing, harvesting, processing and supplying timber products from plantation grown resources on behalf of our growers and shareholders. The Company employs over 130 people and manages in excess of 56,000 hectares of Pine, Silky Oak and She-oak plantations, ranging from new plantings to mature trees.
The Company has a number of regional plantation operations:
- Softwood (Pine) plantation operations are located in south east New South Wales, predominantly in the Bombala and Murray Valley regions and throughout the major softwood growing regions of Victoria;
- She-oak and Silky Oak operations are primarily based in the northern New South Wales region and southern Queensland, where conditions are optimal for these species; and
- African mahogany operations (our latest addition) are based in the Douglas-Daly region of the Northern Territory.
In addition to our many years as the most prolific developer of newly established softwood plantations in Australia, Willmott Forests is becoming a major market participant in plantations established for biomass and high value veneer timbers. The Company's forestry managed investment products, plantation management, harvesting operations; downstream timber processing and biomass activities create a complete vertically integrated forestry business.
Over its long history, Willmott Forests has continued to grow and remains an industry leader with an exemplary reputation for reliability and quality in establishing and providing ongoing plantation management of a variety of species.
Timber Processing
Willmott Forests' timber processing facilities situated in Bombala are now operated under a 50:50 joint venture of Willmott Forests Limited and Dongwha Australia Holdings Pty Ltd (Dongwha) known as Willmott Timbers (now trading as TASCO). Dongwha are a global manufacturer of wood materials with turnover in excess of $800 million and processing operations in countries including Korea, Malaysia, Indonesia, New Zealand and Australia.
The existing milling operations involve the processing, refinement and value adding of softwood timber to produce outdoor landscape and fencing products to service the domestic timber markets throughout eastern Australia.
Planning for the new sawmill complex in Bombala, with Dongwha, is well advanced. Underpinned by a 20 year wood supply agreement with Forests NSW, the Bombala facility is undergoing a major redevelopment. Full production
from the new complex is expected to be reached in 2012. Once completed, this will be one of the largest production facilities of plantation based landscaping products in the world.
Willmott Energy
Willmott Energy is a renewable energy business that has been developed and resourced to create new revenue streams for Willmott Forests.
The Willmott Energy division is focused on the production of renewable fuels, renewable energy and carbon sequestration opportunities as the world seeks alternatives to our current reliance on fossil fuels (oil and gas) and electricity (coal and gas). This business unit has a clear, yet
multi-facetted, strategy based on:
- the utilisation of biomass produced from dedicated energy crop plantations and that arising from normal plantation forestry activities and sawmill residues;
- the licensing of Ethanol Technologies' process and the production of ethanol through the conversion of lignocellulosic materials such as wood, municipal green waste and bagasse (waste from sugar production) which is in development at the Harwood pilot plant on the north coast of New South Wales; and
- the development of new plantations for carbon sequestration and wood production.
Commercial opportunities are evident in all of the above mentioned areas, both domestically and internationally. It is intended to exploit Willmott Forests' extensive experience in land sourcing and plantation development along with our knowledge of renewables markets to realise these opportunities.
History
In 1979, the late Hector Willmott founded the Willmott Forests business, which carries his name. Willmott Forests continues to build on the vision of its founder by providing future generations of Australians with a sustainable supply of timber products with a variety of uses. Willmott Forests' beginnings were in the softwood sector, initially in north east Victoria and south east New South Wales, where it still operates today. In fact, the Willmott Forests plantation estate currently comprises 86% pine plantations. More recently, operations were commenced on the north coast of New South Wales, southern Queensland and the Douglas-Daly region of the Northern Territory. Over its many years of experience, Willmott Forests has established long-standing and strong government and community links which we continue to maintain and enhance.
Plantations
Willmott Forests is the market leader in the establishment of Pinus radiata (‘Softwood' or ‘Pine') plantations in Australia.
Pine is one of, if not, the most important tree species to the Australian forestry industry. Australia's softwood plantations represent a large national resource base of over one million hectares. There has been widespread recognition that this valuable resource base must be increased substantially in the future to meet domestic and global demand.
With 30 years experience in developing and managing softwood plantations and a softwood resource base that continues to expand, Willmott Forests has applied its extensive plantation establishment and management expertise to the integration and growth of Silky Oak and She-oak
plantations, which now form part of the Company's plantation estate under management. Willmott Forests will continue to expand its plantation
estate with the establishment of African mahogany plantations in 2009-10.
Willmott Forests' expanding Silky Oak plantations are one of the largest plantation resources, in Australia, for high-value veneer timber and its increased She-oak plantations, under management, continue to service the growing market for renewable energy.
Willmott Forests' plantation strategy is a simple one - ‘develop valuable plantation resources of proven species in key regions with a focus on value adding'.
Responsible entity
Willmott Forests is the responsible entity for the Project and a number of other managed investment projects. In 1989 Willmott Forests offered its first ‘prescribed interest' project via a registered prospectus. This experience in the managed investment industry means Willmott Forests is well equipped to meet its obligations under the Corporations Act, the Constitution, and the Agreements. Willmott Forests, as responsible entity, is entitled to appoint agents to perform any tasks or carry out any services that it is authorised to do in connection with the Project; however, it remains responsible for the actions or omissions of any agent.
Investment Projects
Willmott Forests is a pioneer in forestry based managed investments and as a responsible entity controls a number of Woodlot investment projects.
Since 1980, the Company's forestry investment offerings have given rise to the establishment of over 56,000 hectares of plantations throughout New South Wales, southern Queensland and Victoria.
The Company's 2010 Premium Forestry Blend Project, which combines three unique species (Pine, Silky Oak and African mahogany), provides investors with multiple income streams. This product was distributed throughout Australia by our extensive network of dealers.
The Company's newly developed Premium Timberland Fund, which combines African mahogany plantations in the Northern Territory with rural land
ownership in northern New South Wales, provides investors with multiple sources of income, including rental income from the rural land owned by the Fund, harvest income from the African mahogany plantation, and capital growth in the value of the rural land.
Plantation harvesting operations
As Willmott Forests' plantation estate continues to grow, harvesting is increasingly becoming a daily activity. These operations are predominantly focussed in the Bombala region at present with sawlogs being harvested and delivered to the Willmott Timbers Bombala mill and pulpwood being directed to Visy's Tumut Kraft pulp and paper mill. Willmott Forests has committed more than 500,000 tonnes of pulpwood to Visy between 2009 and 2020 providing a secure market for pulpwood produced from existing plantations in the Bombala region and ensuring that thinning operations are undertaken on schedule in order to maintain plantation health and maximise plantation productivity. Harvesting will commence on the north coast of New South Wales for the supply of biomass from our She-oak plantations into the cogeneration facility at Broadwater. This facility produces electricity for 30,000 homes and this contract represents the first commercial scale harvest of dedicated energy crops for electricity production in Australia.
Summary
With 30 years of sustainable plantation management and rural land ownership coupled with our timber processing activities, Willmott Forests continues to be one of Australia's leading integrated forestry operations. The Company's capability continues to grow and the commitment to quality
and service is evident in every facet of our operations.