Decision

Consent granted

Section 23A Overseas Investment Act 2005
Decision MakerThe Minister for Land Information and the Hon Stuart Nash
Decision Date9 September 2020
Pathway(s)

Sensitive land – standing consent - special forestry test

National interest assessment
InvestmentOverseas investment is in yet to be identified sensitive land.
Asset Value/Consideration FIX-
Applicant

Oji Fibre Solutions (NZ) Limited

Japanese Public (47.608%)

Government of Japan (38.4%)

United States Public (5.598%)

United Kingdom Public (4.41%)

Various overseas persons (3.198%)

Luxembourg Public (0.786%)
Vendor-
Background and scope of consent

The Applicant is one of New Zealand’s largest domestic processors of wood fibre and a major domestic manufacturer of kraft pulps and packaging products.

The Applicant has sought standing consent for forestry activities in order to secure future wood fibre supply for its pulp and paper operations at the Kinleith Mill in Tokoroa and the Tasman Mill in Kawerau.  These mills are major employers in their respective regions.  The Applicant submits that securing long-term fibre supply will combat uncertainties in the fibre market and help ensure viability of its mills, which provide a livelihood for its employees.

This forestry activities standing consent was granted by the decision-making Ministers in accordance with section 23A and Schedule 4(3) of the Act.  Prior to their granting consent, the Minister of Finance determined the investment is not contrary to New Zealand’s national interest. 

The Applicant must notify the Overseas Investment Office each time it settles a transaction under the standing consent and must comply with other conditions.

The Ministers placed the following limits on the standing consent:

  • no more than 15,000 hectares of sensitive land may be acquired in total, and the maximum land area per transaction is:
    • 2,500 hectares per transaction involving an acquisition of interests in land that is already used exclusively or nearly exclusively for forestry activities; and
    • 500 hectares per transaction involving an acquisition of interests in land that is non-forest land (including farm land being acquired for conversion to forestry);
  • there is a maximum limit of a total of 25 transactions;
  • residential land may not be acquired;
  • the standing consent only relates to acquisition of interests in land that is located within a particular geographic area in the Central North Island region (being an area within proximity to its mills); 
  • the standing consent cannot be used to acquire an investment in a strategically important business; and
  • the standing consent expires on 30 September 2023.
More information

Chris J Parke

Dentons Kensington Swan

18 Viaduct Harbour Avenue

Auckland