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MADISA FORESTRY CONSORTIUM ANNOUNCEMENT

Release Date: 25/08/1999 17:34
Code(s): YRK
Wrap Text

THE MADIBA FORESTRY CONSORTIUM HAS CONFIRMED IT WILL SUBMIT A BID FOR THE STATE'S FORESTRY ASSETS IN MPUMALANGA ON FRIDAY, 27 AUGUST 1999, DESPITE ELEVENTH HOUR WITHDRAWAL OF CONSORTIUM MEMBER SONAE.
SOLLY TUCKER, CHAIRMAN OF YORK TIMBER ORGANISATION (YORKOR), SAID THAT SONAE, THE PORTUGUESE PARTICLE BOARD MANUFACTURE HAD NOTIFIED THE CONSORTIUM YESTERDAY THAT IT HAD DECIDED NOT TO PARTICIPATE IN THE BID. "INTENSIVE WORK HAS BEEN UNDERWAY WITH OUR TWO CONSORTIUM PARTNERS, SONAE AND MADIBA MILLS, SINCE THE BEGINNING OF THE YEAR.
"WE ARE SATISFIED THAT ALL THE DUE DILIGENCE WORK AND OTHER KEY DISCIPLINES HAVE BEEN RIGOROUSLY AND RELIABLY COMPLETED AND NOTHING PREVENTS US FROM MAKING A BID." A COMPETENT TEAM OF PROFESSIONALS LED BY BOE MERCHANT BANK HAVE WORKED ON THE PREPARATION FOR SEVERAL MONTHS.
TUCKER WAS NOT AT LIBERTY TO SAY WHETHER SONAE'S PULLOUT WOULD AFFECT THE BID PRICE. "OBVIOUSLY THIS ASPECT WAS BEING REVIEWED IN THE NEXT TWO DAYS TO THE DEADLINE, BUT THE GOVERNMENT HAS MADE IT CLEAR THAT SOCIO-ECONOMIC FACTORS WERE ALSO PIVOTAL TO THE AWARD CRITERIA, SUCH AS THE CONTRIBUTION TO BLACK
EMPOWERMENT, JOB CREATION, EXPORT DEVELOPMENT, ENVIRONMENT IMPACT, COMPETITION LAW AND POLICY, ETC".
THE MADIBA FORESTRY CONSORTIUM WAS ON THE SHORT LIST OF THOSE INVITED BY THE GOVERNMENT TO MAKE A BID FOR THE DWAF/SAFCOL FORESTRY ASSETS. TUCKER SAID TALKS WERE UNDERWAY WITH OTHER INTERESTED PARTIES.
THE MADIBA FORESTRY CONSORTIUM IS NOW MADE UP OF YORKOR AND MADIBA MILLS. YORKOR IS THE JSE LISTED FOREST PRODUCTS ENTERPRISE, WHOSE OPERATIONS ARE LOCATED NEAR WHITE RIVER AND BUSHBUCKRIDGE, MPUMALANGA. YORKOR HAS BEEN IN BUSINESS IN THE AREA FOR NEARLY 100 YEARS
THE OTHER CONSORTIUM PARTNER IS THE THREE-YEAR-OLD EMPOWERMENT ENTERPRISE, MADIBA MILLS, HEADED BY NTHATO MOTLANA (THE YOUNGER). SITUATED HEAR WHITE RIVER, MADIBA MILLS WAS THE FIRST SAWMILLING OPERATION IN THE FORMAL SECTOR OF THE TIMBER INDUSTRY TO BE RUN BY BLACK MANAGEMENT. THE MADIBA FORESTRY CONSORTIUM PLANS TO MAKE IT A MODEL TO SHOW THE WAY TO A PROFITABLE FUTURE FOR ENTERPRISING BLACK ENTREPRENEURS WHOSE ENTRY INTO THE SAWMILLING INDUSTRY HAS BEEN BARRED BECAUSE OF BARRIERS TO SECURE SOURCES OF LONG TERM SAWLOG SUPPLIERS, "WE AIM TO CORRECT THIS," SAYS TUCKER.
IT WAS ANNOUNCED LAST WEEK THAT MATHEWS PHOSA, PREVIOUSLY :PREMIER OF
MPUMALANGA, HAS TAKEN UP THE CHAIRMANSHIP OF MADIBA MILLS. ENDS....

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