The Company is a subsidiary of the Umgano Development Company (Pty) Ltd and will be a privately owned Sawmilling and lumber processing business.
The Umgano Development Company (Pty) Ltd grows its own timber through its subsidiary, The Umgano Forestry (Pty) Ltd and requires better control over the movement of its Pine timber at a reduced cost and value adding to improve profit margins.
The shareholders are:
- Umgano Development Company (Pty) Ltd (MDC) which owns 1280 hectares of commercial timber and is currently harvesting and selling 24 000 tonnes of gum timber a year. Of this, 442 ha are of Pine species producing, from thinnings 5 000m3 of timber p.a. This volume will increase exponentially to 6 000m3 p.a. as the Pine plantations commence maturing in 2020.
- Umsonti Community Forestry (Non-Profit Company) which will provide the technical skills and experience required to operate the Mill. It also will provide the initial administration, financial and business skills required until such time as local skills are developed.
The primary objective of forming a shareholder-owned timber processing company is to have the ability and means to manage and control our own Pine timber through adding value at the source, in a cost effective, reliable and resourceful business manner.
Secondary Objectives:
- To short haul our own pine timber from the Umgano plantation to our own processing mill with our own vehicles.
- To add value to our Forestry Company through secondary processing of own Pine timber
- To create sustainable employment for additional community members
- To create a financially sustainable timber processing company
- To aid local community-based organisations and initiatives (CSR)
