Furthering the Company’s strategy to establish a vertically integrated solid wood processor and securing raw material supply, the Company purchased Global Forest Products (GFP) in 2007. It was the same year the largest fi re ever experienced in the history of South Africa swept through the Sabie valley, nearly derailing the Company’s trajectory in the forestry industry.
In 2008, the fate of Yorkcor rested on a due diligence exercise that assessed its longevity and sustainability in the face of seemingly insurmountable obstacles. The Company was experiencing the negative aftermath of the acquisition cost of GFP, as well as a downturn in profits brought on by global and local economic factors. Stakeholders convened meetings to debate the Company’s future: a choice between selling the assets of Yorkcor or breathing new life into the ailing organisation. With the backing of Metier, a private equity firm and the Industrial Development Corporation, the Company was placed on its path from salvage.
The devastating fire gave rebirth to the Company’s destiny and it was renamed York Timber Holdings Limited (York). York had to embark on a comprehensive re-engineering of the business which included corporate actions of debt restructuring and a rights issue of R552 million.