SUNBIZ

Fiji Pine Braces To Tackle Challenges Beyond Control

Whilst Fiji Pine Group of Companies has been beating their financial records for the past few years, the forecast for this year is not looking so good. But the reason
20 Jul 2016 12:00
Fiji Pine Braces To Tackle Challenges Beyond Control
A new state of the art Tropik Wood sawmill was opened by Prime Minister Voreqe Bainimarama in Drasa, Lautoka yesterday. Photo:ARISHMA DEVI NARAYAN

Whilst Fiji Pine Group of Companies has been beating their financial records for the past few years, the forecast for this year is not looking so good.

But the reason for this is something beyond their control.

Executive chairman, Faiz Khan, said they have lost six months in factory upgrades already and they are now faced with a slump in the world soft wood chip demand.

He made these comments yesterday and the Prime Minister opened the new $18.12 million sawmill and kiln facilities for Tropik Wood Drasa Mill in Lautoka.

“In the wood chip commodity market we are both price and volume takers,” Mr Khan said.

“We have ridden similar tough market situations in the past. We have to fight the challenges again in 2016 and 2017.

“Just like our forests, we need to take a long term view of our brand new factories.

“These factories will age very quickly if we do not properly maintain and look after them. In many ways our work has just begun.”

Mr Khan said they made record operating profits of $24.17 million in 2015, beating the earlier records set in 2014 and 2013.

“Our revenue grew by $25m in 5 years from 2010 to 2015 whilst our profits grew by $29 million in the same period,” he said.

“That shows our prudent financial management of both expenses and revenue.

“Landowners, it follows that once our upgrades of out of date factory capital is completed, more and more monies will be given to landowners.

“We will achieve this through a united long term approach; by working day by day.”

edited by: Rachna Lal

Feedback:  rachnal@fijisun.com.fj



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