Overseas investment decision for case 202200614 - Oji Fibre Solutions (NZ) Limited

The Applicant is a producer of market pulp, paper and fibre-based packaging, and is New Zealand's largest domestic processor of wood fibre.

The Applicant has been granted a standing consent for forestry activities which enables it to acquire existing forests to secure future wood fibre supply for its pulp and paper operations at the Kinleith Mill in Tokoroa and the Tasman Mill in Kawerau.  These mills are major employers in their respective regions.  The Applicant submits that securing long-term fibre supply will combat uncertainties in the fibre market and help ensure viability of its mills, which provide a livelihood for its employees.

The Ministers placed the following limits on the standing consent:

• existing production forests, excluding farm land and residential land only; 
• no more than 10,000 hectares of land;
• no more than 2,500 hectares per transaction;
  up to 30 transactions;
• land in the Central North Island only, but excluding land in the Gisborne Region and Wairoa District;
• the standing consent cannot be used to acquire an investment in a strategically important business; and
• transactions must be entered into by 25 January 2027, and be completed by 25 January 2028. 

Consent was granted as the Applicant met the investor test criterion, the Applicant has demonstrated the conditions of the standing consent were likely to be met, the Applicant has adequate processes in place to meet the requirements of the special forestry test and the Applicant has a strong track record of compliance.