Timber newcomer buys Waipa sawmill

By PAM GRAHAM

After nearly three years in receivership, the Waipa sawmill is being bought by accountant Phillip Verry and property developer Gary Catley.

Waipa is one of the biggest employers in Rotorua and among the largest sawmills in the country.

The sale, for an undisclosed sum, comes after Carter Holt Harvey this week confirmed the closure of its Tokoroa sawmill with the loss of 90 jobs.

Verry said he was new to the industry but was taking the view that the bottom of the cycle was a good time to buy.

The mill had good plant, good management and wood supply had been secured.

"We have the broad business skills to operate such a business and we have others who are joining us who have industry skills."

Raglan-based Verry was behind the Black Horse Holdings Consortium, a failed bidder for National Bank of New Zealand, which never disclosed details of members or funding.

Verry's son Martin will be a director of the company buying the mill with Catley and others will be appointed.

Fletcher Challenge managed the former state-owned mill for years, and this year expressed a brief interest in buying it.

Fletcher aims to sign a sale deal to sell its forests by Christmas as part of a plan to turn into a wood-processing company after failing to buy the Central North Island Forests Partnership assets last year.

CNIFP receiver Ferrier Hodgson set up a company called Red Stag Timber to take over running the mill from Fletcher from October 1.

Michael Stiassny of Ferrier Hodgson said the previously announced sale of CNIFP's forests was expected to be completed by Christmas.

Verry said the mill employed 200 people directly and 100 more on contract and he had no plans to shed jobs at this stage.

He would undertake a strategic review and then leave management to get on with running the business.