Nippon Paper Subsidiary and Pentarch to Acquire New Zealand Softwood Chip Exporter

Nippon Paper Resources Australia Pty Ltd., a wholly owned subsidiary of Nippon Paper Industries Co Ltd, has entered into an agreement to jointly acquire all shares of Marusumi Whangarei Company Limited, a New Zealand-based softwood chip production and export company, Nippon Paper Group announced (2-6-26).

The acquisition will be completed in partnership with Pentarch Forestry Pty Ltd., an Australasian timber manufacturing and export company headquartered in Melbourne, Australia. Upon completion, Nippon Paper Resources Australia will hold a 70% stake and Pentarch Forestry 30%. The share transfer is expected to be finalized by the end of February.

Following the transaction, the partners plan to sign a formal joint venture shareholders’ agreement and operate the business jointly. Marusumi Whangarei Company Limited will be renamed NP Wood Fibre Company Limited.

NP Wood Fibre will operate a major New Zealand softwood chip production and export business, leveraging the country’s forest resources to meet anticipated growth in global demand for softwood chips. Nippon Paper said the deal supports diversification of procurement sources and the establishment of a stable softwood supply for the Japanese market.

In collaboration with Pentarch, NP Wood Fibre will market softwood chips across Asia. The venture will combine Nippon Paper Group’s experience in hardwood plantation management and woodchip production and export operations in Brazil and Australia with Pentarch’s capabilities across lumber, woodchip, and other timber-related businesses.