This agreement forms part of a larger transaction by Flight Group, including the sale of its Flight Forests plantation assets of approximately 4,200 hectares of freehold land and radiata pine softwood plantations to Sydney-based company New Forests.

The change in ownership of Flight Timbers is expected to take effect on 1 September 2015.

Flight Group is a diversified manufacturing business with two key operational divisions, Flight Plastics Limited and Flight Timbers. Flight currently owns a mill and timber remanufacturing operation in Blenheim, in the South Island of New Zealand.

Flight Group has performed a strategic review of its operations, and following this transition will focus investment on in its Plastics and Resort Contracts businesses.

Timberlink Australia, which was formed in February 2013 from the sale of Gunns Limited’s softwood sawmilling assets in Australia as a result of receivership, view the acquisition as a key step in their plans for future growth and diversification of the Timberlink business.

Timberlink Australia and NZ Chief Executive Officer (CEO), Mr Ian Tyson, said that, “Timberlink has been on a journey to ensure our future competitiveness and sustainability as a softwood manufacturing business in today’s global market.

“The Flight acquisition enables business diversification in terms of market, customers and products whilst leveraging from the company’s current capability and experience with radiata pine sawmilling and sales in Australia”.

Timberlink plans to undertake significant business investment, including additional capital expenditure over the coming two to three years.

Mr Tyson added that this will strongly position the business for an exciting future.

The new entity will operate as Timberlink New Zealand, a subsidiary of Timberlink Australia, and the site’s current management team will remain in place. Flight Group’s Romon Spiers will continue to be the site General Manager, reporting to Timberlink’s CEO Ian Tyson.

The Flight brand will continue to be used for up to 12 months of operation. During this period the company will be developing plans to rebrand as Timberlink New Zealand, along with any other associated product brands if required.