Western Forest Products has sold a large chunk of its private forest lands on the North Island to an international carbon credit firm.
The sale of 14,500 hectares of land was announced on Tuesday, it’s been purchased by a Canadian affiliate of the Eastwood Climate Smart Forestry Fund I LP for nearly $70 million. The parcel’s location was not identified.
Steven Hofer, president and CEO of Western, says in a statement the company will use the proceeds to reduce its debt, and focus on higher value manufacturing. He says that will include more kiln upgrades similar to what was added in Ladysmith last year.
The Eastwood fund was originally created by a Japanese forestry company and American partners. It offers carbon credits for sale to companies looking to reduce their greenhouse gas emissions.
