Overseas investment decision for case 202100118 - Juken New Zealand Limited

The Applicant has applied for consent under the special test relating to forestry activities set out in section 16A(4) of the Act.

The Applicant is a New Zealand incorporated company, ultimately majority beneficially owned by Wood One Co. Ltd, a Japanese incorporated company engaged in the manufacture and sale of housing construction materials, and management of forests. The Applicant is a long-term participant in the New Zealand forestry and wood processing industry, with forests located in Wairarapa and the East Coast of the North Island.

The forestry right will be granted over Wharerata Forest (6,141 hectares) in Gisborne, and Waituna Forest (1,870 hectares) in Hawke’s Bay. The forests combined have approximately 6,620 hectares planted, with limited ancillary rights over the remaining land necessary to establish, maintain or harvest the commercial forests.

The forests are currently used by the Applicant pursuant to a Crown forestry licence between the Vendor (as successor to the Crown) and the Applicant. The Vendor, representing iwi, wishes to continue a relationship with the Applicant by replacing the CFL with the Forestry Right.

The forests do not include any residential land and will not be used for residential purposes.

The consent includes a condition requiring the Applicant within two years of harvest to either (a) replant or (b) dispose of its interest in the relevant portion of land by terminating the Forestry Right over that portion.