NYK to sign a joint venture agreement on a plantation project near Adelaide in the state of South Australia involving 7 Japanese companies engaged the enterprise
September 5, 2002
Nippon Yusen Kabushiki Kaisha, Aeon Co., Ltd., Chubu Electric Power Company International B.V., Hokuetsu Paper Mills Ltd., Mitsubishi Corporation, Mitsubishi Paper Mills Ltd., and Tokyo Gas Co. Ltd. will sign the joint venture agreement on Friday September 6th, 2002. The purpose of the project is to plant and develop 1,000 ha of Eucalyptus per year on grassland from 2003, targeting a total 10,000 ha plantation in 10 years in an area adjacent to Adelaide.
The joint venture company to be called "Adelaide Blue Gum Pty Ltd." will have its Head office in Victor Harbor, South Australia, from where it will oversee the business.
From 2014 onward, we plan to harvest 1,000 ha of the planted trees per year, process them into woodchips (paper raw materials) and sell the woodchips to Mitsubishi Paper Mills Ltd. and Hokuetsu Paper Mills Ltd., our joint venture partners. Replantation will be implemented after harvesting for sustainable forest management.
These days a number of Japanese companies have participated in plantation projects focusing on the benefit of a stable and sustainable supply of paper raw materials and mitigation of the greenhouse effect by absorption of carbon dioxide. Our project will be the largest undertaken among the existing joint venture projects which Japanese enterprises are involved, in terms of the number and variety of participating companies.
NYK, is the largest ship operator for woodchip transportation in the world, having 36 dedicated vessels contributing to supplying woodchips for pulp and paper, and has become the first shipping company to participate in a plantation project.
Under the support of the South Australian Government, we are confident that our project will contribute to the conservation of forest resources and the environment while promoting the regional economy in South Australia.
- The purpose of the project
(1) To secure a stable supply of paper raw materials and obtain an operating profit from the sale of woodchips produced from planted Eucalyptus trees.
(2) To preserve forest resources and the environment in South Australia while promoting the regional economy. - The outline of the project
The planting of Eucalyptus Globulus up to 10,000 ha. will be established.
(Annual planting area 1,000 ha X 10 years) The wood will be harvested (at the age of 10 years) chipped and sold to Mitsubishi Paper Mills Ltd. and Hokuetsu Paper Mills, Ltd. - Plantation location
Mt. Lofty Ranges, eastern Adelaide (within a radius of 90km from the port of Adelaide) in the state of South Australia, Australia.
- Company Name
Adelaide Blue Gum Pty Ltd. (Abbreviation: ABL)
- Joint venture partners and investment shares
Joint venture partners Investment shares Mitsubishi Paper Mills Ltd. 35% Hokuetsu Paper Mills, Ltd. 15% Aeon Co., Ltd. 10% Chubu Electric Power
Company International B.V.10% Tokyo Gas Co., Ltd. 10% Nippon Yusen Kabushiki Kaisha 10% Mitsubishi Corporation 10% Total 100% - Total contributions
Approximately A$ 70 million (approximately 4.9 billion yen)
- Term of the project
Approximately 50 years
- Schedule for the project
September 2002 : New company established
June 2003 : Planting to commence