Leading timber supplier Premier Forest Products has completed an agreement to sell the assets of their sawmill at Croespenmaen near Crumlin, South Wales to SDL Sawmills Ltd.
As part of the mutually beneficial deal, SDL Sawmills will take on the site and existing staff and continue with full scale milling activities. With an offtake agreement, Premier Forest will continue to supply the finished sawn products from the mill to their existing, diverse customer base.
Premier Forest has had a long relationship with another business in the SDL Group, which has the capability to manufacture the residues from the mill into wood pellets for the biomass industry; SDL is able to utilise the entire log, maximizing value through both the factory and produced goods, as well as the waste.
Premier Forest will buy all of SDL’s sawn products, fencing materials, fence panels, sleepers, pallet wood and sawn timber to secure consistent, continual supply for their customer base and to fulfil market demand.
Terry Edgell, Co-founder & CEO of Premier Forest Products said, “This deal is perfect for SDL, Premier Forest and our customers, who will continue to receive uninterrupted supply of our respective products.
“We are building on a strong partnership while making the most of the core capabilities and supply chain of each business; SDL’s in sawmilling and fulfilment of increasing demand for biomass products, and Premier Forest’s in supplying value-add, sawn timber products to the construction and merchanting sectors. It’s a great fit.”
Sam Launchbury, Founder and CEO of SDL said, “This is a perfect deal for the development of the SDL business and for strengthening our partnership with Premier Forest. By purchasing the sawmill, and recently building an in-house harvesting team, we are now able to complete the circle from purchasing standing trees and milling, to generating heat and power which is then used to convert sawmill bi-product into a renewable energy fuel.
“The offtake agreement with Premier Forest for all the sawmill’s finished products means that we are now in the position to utilise 100% of the standing tree, creating a sustainable product for the building, landscaping and heating sectors across the UK.”
SDL is planning further investment in the sawmill to develop the facility and increase production, creating additional employment opportunities both directly and indirectly at the site.
Premier Forest Products is engaged in the importation, processing, merchanting and wholesale distribution of timber and timber products from 13 sites across the UK.