Start-up of Sawmill in Uganda

At the end of 2015, Busoga Forestry Company (BFC), Green Resources’ Ugandan subsidiary, started up a new sawmill in Bukaleba with 8,500m3/year/shift capacity. This will represent an important source of new revenue for the company. The project has been implemented by GR’s own team, while the mill was installed by WoodMizer’s engineers. Funding has been achieved from internal cash flow and local bank finance.

sawmillThe sawmill will be supplied with logs from final fellings and thinnings from GR’s own forest in Bukaleba, Eastern Uganda. The mill will be running two shifts within a couple of years, and provide an important diversification of revenues in addition to BFC’s existing utility poles business. The mill is located close to the main markets, only 120 km from Kampala, Uganda’s capital. The vertical integration is expected to generate strong cash flows, as is already the case for BFC’s utility poles business. BFC has been returning capital to the holding company for more than a year, and the new mill will further strengthen BFC as a pillar within Green Resources.

While the Uganda sawmill is still relative small, this is GR’s first important expansion into sawn timber outside of Tanzania (where it has two sawmills with a capacity that is almost 10x greater). In 2016, GR plans to start up a new sawmill in Lichinga, Mozambique, with 15,000m3/year/shift capacity, based on thinnings from its 17,000 ha forest estate in Lichinga.

Press release - PDF