Timber supplier Premier Forest Products announces that it has completed an agreement to sell the assets of their sawmill at Croespenmaen near Crumlin, South Wales to SDL Sawmills Ltd.
As part of the mutually beneficial deal, SDL Sawmills will take on the site and existing staff and continue with full scale milling activities. With an offtake agreement, Premier Forest will continue to supply the finished sawn products from the mill to their existing, diverse customer base.
Premier Forest has had a long relationship with another business in the SDL Group, which has the capability to manufacture the residues from the mill into wood pellets for the biomass industry; SDL are able to utilize the entire log, maximizing value through both the factory and produced goods and also the waste.
Premier Forest will buy all of SDL’s sawn products, fencing materials, fence panels, sleepers, pallet wood and sawn timber to secure consistent, continual supply for their customer base and to fulfil market demand.
Sam Launchbury, Founder and CEO of SDL comments “By purchasing the sawmill, and recently building an in-house harvesting team, we are now able to complete the circle from purchasing standing trees and milling to generating heat and power which is then used to convert sawmill bi-product into a renewable energy fuel. The offtake agreement with Premier Forest for all the sawmill’s finished products means that we are now in the position to utilise 100% of the standing tree, creating a sustainable product for the building, landscaping and heating sectors across the UK.”
SDL is planning further investment in the sawmill to develop the facility and increase production, creating additional employment opportunities both directly and indirectly at the site.
