IRISH Softwoods, the saw milling and timber products company, has purchased a 70 per cent stake in a Belgian sawmill for £6 million. The stake is in Rombois Salmfor sawmill in Viewalm and the remaining 30 per cent will be owned by paper giant, Parenco.
Mr William Grainger, formed Irish Softwoods at Enniskean, Co. Cork in 1977. In 1989 a Belgian company; Sapin, purchased a 26 per cent interest and in February 1995 ICC Venture Capital bought 10 per cent. The remaining equity is held by Mr Grainger. ICC Venture Capital is supporting the new acquisition, taking a 7 per cent stake in the new company which will operate the Belgian mill.
Current Irish Softwoods turnover is about £14 million, 46 per cent of which is exported and this is expected to grow to £37 million in 1997. The new mill is three times the size of the Enniskean facility. Salmor's output will continue to be sold in Europe, where it has a strong market presence.
"The objective of the acquisition is to create a viable, cost effective and internationally competitive timber processor using economies of scale," said Mr Grainger.
