Yorkcor Acquires Bluechip Assets

Yorkcor Acquires Bluechip Assets                                                
York Timber Organisation Limited                                                
Share Code : YRK                                                                
ISIN Code  : ZAE000008108                                                       
JSE-listed Yorkcor has acquired the assets of two established sawmills in the   
Piet Retief area of Mpumalanga for R 6,45 million.                              
On 11 November 2002, the Master of the High Court consented to the disposal of  
the land and buildings and complete plant and equipment of two lumber milling   
companies in liquidation, Bluechip Timbers Mpumalanga (Pty) Ltd and Bluechip    
Industrial Timbers (Pty) Ltd, to Yorkcor operating subsidiary York Timbers Ltd. 
Creditors had approved York`s bid of an all-in consideration of R6,45 million,  
plus VAT, for the assets. "We are delighted with the transaction," said Yorkcor 
chairman Solly Tucker.  "Much of the plant is in excellent condition and, at    
today`s rates of exchange, would cost over R100 million to replace after        
commissioning. The low cost of acquisition gives us a significant competitive   
advantage.                                                                      
"The acquisition complements the sawmilling activities of York Timbers.         
Strategically, it also opens the way to exciting growth prospects for Yorkcor,  
especially in the scramble for the state`s forestry assets in Mpumalanga which  
are still to be privatised."                                                    
These state assets are part of the "Komatiland" forests, and the Government is  
expected to issue invitations to make offers shortly. The two sawmilling        
operations acquired by Yorkcor are already in sound running order and are       
strategically placed in a number of respects.  In terms of location, they are   
amongst the closest to the most important markets, Gauteng and KwaZulu-Natal.   
The acquisition will boost the group`s capability to add value to, and to       
compete for, the valuable Komatiland forests located in that vicinity.          
Yorkcor played a significant role in backing the consortium of Paharpur Cooling 
Towers of India in the first bidding process for the Komatiland forests.  That  
bidding process was scotched by the authorities on account of breaches of good  
governance revealed in official enquiries. The new process has still to be      
initiated and the delay has irked would-be competitors.  Tucker says that he    
will leave for Calcutta later this month to consult with the leadership of      
Paharpur and other would-be players. Paharpur has yet to decide to undertake the
rigours of a re-bid.                                                            
Yorkcor has renamed the larger and more modern mill near Amsterdam, "Roburnia   
Forest Products", after Scottish poet Robert Burns.  A nearby well managed      
SAFCOL softwood forest, soon also to be privatised, is also called "Roburnia":  
(Parts of Piet Retief, established 115 years ago, were known to settlers also as
"New Scotland").                                                                
The other sawmill near Lothair will operate and trade as "Golden Rhino Lumber". 
The locality has an ancient spiritual relevance for the local communities. "We  
are working on plans to give the neighbouring communities a meaningful stake in 
the industry of Golden Rhino Lumber. They have a strategic role to play in      
developing the timber processing enterprise and of creating much needed job     
opportunities in the region," says Tucker.  "Yorkcor is committed to developing 
a capability to launch and nurture empowerment participation in lumbermilling   
concerns."                                                                      
Apart from the virile Scottish heritage, an enduring contribution has been made 
by German settlers whose descendants are prominent achievers in the Piet Retief 
area, especially as timber farmers. "Yorkcor will focus attention on cultivating
mutually rewarding relationships with these growers", says Tucker. "On the whole
they were rather shabbily treated by the previous management running the        
sawmills and many lost money in supplying good timber on credit to the previous 
operators.  We aim, as a priority, to restore confidence in sawmillers as       
customers, and tree growing as a business, amongst these growers," he asserts.  
The two sawmills have not operated since the Bluechip companies were put into   
liquidation.  Yorkcor is planning to fast-track their re-opening as Roburnia    
Forest Products and Golden Rhino Lumber in the first quarter of next year.  "Due
to the good condition of the plant and equipment, we expect the acquisition to  
provide a positive contribution to Yorkcor during 2003," concludes Tucker.      
Ends                                                                            
ISSUED FOR     :    Yorkcor Limited                                             
CONTACT        :    Solly Tucker 012 804 9730  Cell: 082 579 0717               
FAX NO         :    012 804 8611                                                
E-MAIL         :    Sol@yorkcor.co.za                                           
WEBSITE        :    www.yorkcor.co.za                                           
ISSUED BY      :    TISH STEWART PR ASSOCIATES                                  
CONTACT        :    Tish Stewart   (011) 325 4195   Cell:  082 443 6399         
FAX NO         :    (011) 325-4199                                              
E-MAIL         :    Tish@tspr.co.za                                             
DATE           :    13 November 2002                                            
Date: 13/11/2002 03:23:49 PM Supplied by www.sharenet.co.za                     
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