Applicant
SCFNZ Limited
Case number(s)
201210021
Decision date
Type
Decision
DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date14 August 2012
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 2,894.8818 hectares of land in Marlborough.
ConsiderationThe 2012 equivalent of USD $2,316,360 for the land.
ApplicantSCFNZ LimitedSunchang Corporation, South Korea (100.0%)
VendorRII Marlborough LimitedAustralian Public (41.311%)United States Public (33.625%)United Kingdom Public (18.346%)Various, Various (6.718%)
Background

The Applicant is a subsidiary of Sunchang Corporation, a Korean listed company, which manufactures plywood, fibreboard and lumber for commercial and industrial purposes. The overseas investment will allow Sunchang Corporation to secure a portion of its demand for logs from its own forests and therefore control the quality of those logs.

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 of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Greater efficiency or productivity
17(2)(b) – Indigenous vegetation/fauna
17(2)(d) – Historic heritage17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits

More informationGerald Fitzgerald/Matthew Ockleston
Kensington Swan
PO Box 10-246
WELLINGTON 6143