Silvanus Trust steps in to revive Cornish Sawmill
Introduction
Cornish home-grown timber and sustainable woodlands across the county are set for a brighter future thanks to a new £1.7 million investment scheme that will see a major refurbishment and re-opening of the former softwood sawmill in Lostwithiel.
Previously run by Duchy Timber, the Lostwithiel sawmill was closed four years ago in 2002, but this led to a serious decline in the use of Cornish grown wood, adversely affecting many woodland owners and local contractors.
Now, Callington-based Cornish Sawmill plc, a trading subsidiary of the charitable Silvanus Trust, is seeking to re-open the sawmill as well as reviving the local timber industry and it has just entered into a contract to acquire the whole of Duchy Timber.
The Cornish Sawmill plc plans to refit the Lostwithiel mill and build up a strong timber products business using locally sourced wood. To this end, it has already secured significant investment from Objective One and DEFRA, totalling £491,200, plus funding of up to £1,100,000 from the Bank of Scotland.
And, in order to complete the acquisition of Duchy Timber and provide additional working capital for the mill, The Cornish Sawmill plc is now looking to raise £120,000 via 8% redeemable preference shares from the general public as the final part of the funding jigsaw.
Based in Cornwall, The Cornish Sawmill plc intends to create a significant resource in sawmilling and trading across the South West, building opportunities for the industry both locally and nationally. The company expects to process 20,000 tons of timber worth some £1million in its first year of trading.
Since most locally harvested timber is currently sold outside of the South West but much of the timber feeding into the local market comes from outside the region, one of the main aims of The Cornish Sawmill plc is to provide a direct substitution product for the local market.
As a result, the new sawmill will use local timber which is currently under-harvested but, with the planned investment, can be competitively priced against imported timber. The mill already has a wholesale and trade outlet which will enable it to sell sawn timber and complementary products to local businesses, building suppliers and wholesalers.
The Cornish Sawmill plc is the trading subsidiary of the Silvanus Trust, a non-profit making charity that seeks to regenerate woodlands and related industries in the South West. It has over 21 years of experience within the region, including working closely with Cornish woodland owners and on delivering grant aided projects.
Duchy Timber currently has 33 employees and the re-opening of the sawmill will also create fifteen new jobs for the local sawmilling industry.
A senior and experienced manager will be recruited for the timber processing operations, and The Cornish Sawmill has already recruited a retired senior executive from BSW, one of the largest UK sawmilling operators, as a consultant to advise the sawmill manager.
Once The Cornish Sawmill is successfully established, future development plans include improving the existing manufacture of fencing and outdoor wooden goods, plus a new range of further value-added products.
In addition, the firm plans to build a consortium of local customers for whom the sawmill can provide locally grown and branded timber whilst stimulating demand for raw timber in Cornwall which will allow owners to bring more woodland into sustainable management.
Ashfords solicitors acted as legal advisors for The Cornish Sawmill plc, with George Wilkinson and Annelie Joyce dealing with the corporate issues and Mark Moore on the property aspects. Jonathan Williams, a partner with Bishop Fleming chartered accountants, acted in relation to the Share Offer, and Richard Oates acted on behalf of the Bank of Scotland.
Sir Robert Hicks, Chairman of The Cornish Sawmill plc said: "This represents a practical manifestation by The Silvanus Trust to safeguard and enhance a particular sector of our rural economy and landscape."
George Wilkinson of Ashfords said "With our roots firmly in the South West, Ashfords is delighted to be helping The Cornish Sawmill in its plans to re-establish a viable timber product business. This has been a joint effort for all the professionals involved and we wish The Cornish Sawmill and its directors the very best."
The Cornish Sawmill plc is offering £120,000 of 8% Redeemable Preference Shares. Anyone interested in receiving a copy of the Share Offer Document in the company should contact Sue Blacker, chief executive of The Silvanus Trust and a director of The Cornish Sawmill plc, on (01579) 372100 or 07767 650119.
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