Korean firm buys Rayonier MDF plant

Korean forest products company Dongwha Holdings has bought Rayonier's medium-density fibreboard (MDF) plant, near Gore, for $59.2 million.

Dongwha said it would now operate six MDF factories, four in Korea, and one each in Malaysia and New Zealand.

The Rayonier plant was established in 1997 and manufactures 170,000 cubic metres of MDF annually. It sells 10 per cent of its production within New Zealand and exports the rest to Japan, China, Australia and the United States.

Dongwha said it planned to retain all 100 staff at the plant.

Dongwha Holdings chief executive Myung-ho Seung said: "The purchase of the Rayonier MDF plant is part of a long-term strategy and represents another step in our goal of becoming Asia's leading integrated wood-based building materials producer."

Dongwha is the largest panel producer in Korea and has been listed on the Korean stock exchange since 1995.

The acquisition is subject to Overseas Investment Commission approval.

Dongwha said it planned to complete the acquisition in the third quarter of this year.

- NZPA