Fenning Pacific (Fiji) Limited
Fenning Pacific (Fiji) Limited ("Fenning Pacific")
was incorporated in Fiji on 17 June 1994. The
principal activities of its subsidiaries, The
Pacific Lumber Company Limited and Timbers (Fiji)
Limited are timber harvesting, saw milling,
kiln-drying, retail, wholesale and export of Fijian
indigenous timber. The Fenning Pacific Group has
attained a place as the premier native hardwood
processor in the southern island of Fiji, Viti Levu
and the second highest processor of native sawlogs
in Fiji.
On
15th December, 2004 the directors of OGL
announced to the ASX the proposed strategic shift in
business activities from timber harvesting,
sawmilling, kiln-drying and down-stream processing
to commercial cultivation and development of
tropical hardwood plantations.
Rationale for OGL’s Strategic Shift to Hardwood
Plantation
The rapid depletion of natural forests and growing
ecological concerns already has a significant impact
upon the supply of tropical hardwoods. Even as the
harvesting of natural wood becomes increasingly
limited, demand for timber continues to increase
rapidly from year to year.
The worldwide demand for FSC-certified tropical
hardwoods harvested from managed forest plantations
is growing rapidly. OGL has identified managed
forest plantations as a significant resource and
financial growth area. These plantations will yield
a sustainable supply of high quality FSC-certified
tropical hardwood planted and harvested in well
managed and ecologically friendly as well as
acceptable conditions.
With proper supervision these plantations will be
able to enter into long-term agreements to meet
demands for a variety of industries. Moreover,
hardwood plantations will be able to take advantage
of advances in biotechnology that will enhance
timber farming and its spin-offs. Hardwood forestry
farming, scientifically managed and supervised, is
an emergent area that is likely to yield financial
rewards that are both sustainable and profitable.
Forest Management Strategy
OGL will either acquire or lease on a long-term
basis afforested and suitable lands, which satisfy
quality assessments by qualified professionals and
forest management consultants. These forest
professionals and consultants will inspect and
assess the plantation lands prior to any application
being made to the relevant Authorities for their
approval.
Throughout the life of the plantations, OGL will
engage fully qualified professionals to carry out
essential forest and land management tasks which
will all times be governed by the objective of
maximizing returns to OGL. OGL will manage its
tropical hardwood plantations on a sustainable basis
and will seek certification by the Forest
Stewardship Council (FSC) in regard to its forest
management practices.
