(SAFCOL) and Komatiland Forests (Pty) Ltd
26 March 2007
Cabinet has decided to confirm its previous decision to exit the commercial
forestry industry and to dispose of the SAFCOL subsidiary Komatiland Forests
(Pty) Ltd (KLF). As was previously announced this follows an in-depth review by
the Department of Public Enterprises (DPE), in consultation with other
government departments. KLF's commercial operations will be aligned with the
requirements of improved industry structure and operation of the saw log market
and ownership of KLF will be transferred to the private sector.
There is recognition that KLF is a valuable asset to the South African
forestry industry but the Cabinet is of the view that this value and other
objectives can be retained by means other than State ownership.
The DPE will be responsible for ensuring clear guidelines with regard to
government objectives and will empower the SAFCOL Board to implement Cabinet's
decision. The goal will be to ensure that, in future, the value of the State
owned forests will contribute optimally to government's objectives for the
forestry, timber, pulp and paper sector.
The DPE and the Department of Water Affairs and Forestry (DWAF) are also
working together in developing a developmental programme that will be
undertaken by DWAF.
Further announcements will be made as the transaction proceeds.
For enquiries please contact:
Ms Vimla Maistry
Chief Director: Communications
Department of Public Enterprises
Tel: (012) 431 1021
Cell: 082 372 0270
E-mail: Vimla.maistry@dpe.gov.za
Issued by: Government Communications (GCIS)
26 March 2007
Source: SAPA
