Overseas investment decision for case 200910085 - New Zealand Sustainable Forest Products

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in 12.1841 hectares of land at Gannons Road, Reefton; and
• a freehold interest in 7.8625 hectares of land at Gannons Road, Reefton.

Robert Hunt and Valerie Rosalind Hunt
New Zealand (100.0%)

Coastpine Limited
New Zealand (100.0%)

The Applicant is intending to saw, dry and manufacture sustainably logged New Zealand timbers. PCS VacDry Kilns Unlimited (PCS), a sister company of the Applicant, has patented a method to dry previously hard-to-dry hardwoods. The Applicant will use this new technology to create a world first drying facility specialising in red beech. This facility will be based in a disused sawmill situated on the land.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(ii) – New technology or business skills
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/Productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(e) – Walking Access

Overseas Investment Regulations 2005
28(a) – Consequential Benefits
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant government policy or strategy

Elena Chang
Bell Gully (Auckland)
PO Box 4199
AUCKLAND 1140

Andrew Petersen
Bell Gully (Auckland)
PO Box 4199
AUCKLAND 1140