Kangaroo Island Plantations Timbers is Australia’s only listed timber company. It manages a wholly-owned portfolio of hardwood and softwood forestry plantations, growing on former agricultural land on Kangaroo Island, South Australia.
Unlike many businesses in the timber sector, Kangaroo Island Plantations Timbers has no involvement in managed investment schemes or in logging native forests. It is majority Australian owned. This allows the Company to take a long-term view in managing its plantation timber and land assets for the benefit of shareholders … and to acquire under-priced assets if and when they become available.
The Company owns around 8,000 hectares of productive Kangaroo Island land, approximately half of which is planted with either softwood (radiata pine) or hardwood (eucalyptus globulus and eucalyptus nitens) and half of which is either cleared or contains native vegetation. The Company also owns Kangaroo Island’s only sawmill and owns land at Smith Bay that is considered suitable as a site for a deep water wharf that can be used as a bulk log or chip export facility.
It is the view of the Directors that timber as an investment class offers the scope for sustainable returns in the longer term, as well as other potential benefits such as carbon sequestration rights. Notwithstanding short-term market distortions, timber as a commodity is growing in demand and diminishing in supply due to the long lead time required to produce the end product and the decreasing availability of native forests for clear-felling.
The Company is proud to be a part of the Kangaroo Island community and is confident about the role that well-managed plantation timber production can play in the future of this most precious part of Australia.