SEFE makes third loss in 3 years

South East Fibre Exports, owner of the Eden woodchip mill has recorded another loss, its third in 3 years. The loss was reported in SEFE’s Annual Financial Statement for 2013 to the Australian Securities and Investment Commission (ASIC) yesterday.

The loss for 2013 was $1,137,698. Its exports for the year were down to 705,496 tonnes (down from 766,161 last year). More than three quarters of its income came from its parent company, the Japanese paper giant, Nippon Paper.

“These figures confirm that the chipmill is now living on borrowed time,” according to convener of the Chipstop Campaign, Harriett Swift.

Ms Swift said that it is clear that Nippon Paper has tolerated these losses in the short term, but it must only be a matter of time before it runs out of patience.

“In recent years SEFE has tried various ways to diversify its activities to improve its long term viability.”

“All of these have failed and the future of the chipmill is looking grim,” she said.

“Desperate measures have included a wood fired power station which stalled when the Government subsidies were not enough.”

“SEFE also set up a wood pellet plant, but it closed ignominiously after a few months and still sits idle.”

“They are now pinning their hopes on a plan to share some of the chipmill’s stockpile and loading facilities with an iron ore exporter, but there is every chance that this could fail too.”

Ends

29 April 2014

 

Financial Statement to ASIC available at: http://www.woodchippingsux.net.au/SEFE%20Ann%20Rept%202013.pdf