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SEFE makes another (bigger) loss


The Nippon Paper owned Eden chipmill has recorded another loss, much bigger than last year.

The struggling woodchip company made a “total comprehensive loss” for 2012 of $3,014,116 and an after tax loss of $2.6 million.

The figures are revealed in South East Fibre Exports (SEFE) Financial Statements to the Australian Securities and Investments Commission.

Spokesperson for the Chipstop Campaign, Harriett Swift described the result as a wake-up call for the woodchipping industry.

“Every week there are woodchip carriers passing Eden on their way to pick up loads of plantation chips or returning to Japan or China with loads of plantation chips.”

“Even the Eden Maru no longer comes to Eden but passed by this week on its way to another port.”

“The paper manufacturing industry is prepared to pay higher prices for  the plantation woodchips because they are better quality and don’t carry the same stigma with customers,” she said.

SEFE exported 766,161 tonnes of woodchips during 2012, which is the lowest result since 2002.

It has also become more dependent on its parent company, with Nippon Paper taking around 70% of all woodchips.

“Some of those 766,161 tonnes were from plantation pine and SEFE should be trying to develop markets for plantation pine chips to ensure its survival.

“If the chipmill has a future at all, it must be in plantation sector,” she said.

Ms Swift warned the industry against dreaming of energy from woodchips as its saviour.”
“In the past 3 years SEFE has ditched plans for a wood fired power station and wasted almost a million dollars on a wood pellet plant that it closed last December.”

“Without enormous subsidies, so-called ‘bio-energy’ will not help it,” she said.



24 May 2013