Carter Holt eyes Asian investments

By Nick Stride

Friday 7th May 2004

Carter Holt Harvey has signalled it may buy or build production capacity in its Asian markets and said worries at home could jeopardise further investment in New Zealand.

Carter Holt is hanging on to about half the $1 billion proceeds of the sale of its tissues division and it is widely expected to add to its cash stockpile by selling forests surplus to its wood supply needs.

"During 2004 Carter Holt Harvey will continue to consider sound acquisitions and divestments in line with our areas of expertise," chairman John Maasland told the annual meeting.

"This may include investment in production capacity closer to our customers in key Asian markets."

Chief executive Peter Springford said the company was disappointed Meridian Energy's Project Aqua had not gone ahead "and we expect serious energy shortages in the future."

The new provisions of the Employment Relations Bill, and uncertainty over future energy supply, would make it harder for the company to justify further major investments in New Zealand, he said.

"Given our past experience in export markets and our exposure to foreign exchange variables, we will continue to look closely at the potential opportunities from what we call a 'multi-domestic processing strategy,' that is, operating production facilities within the markets we serve."

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