Mount Gambier’s oldest and largest independent sawmiller is set to pass out of local ownership.
The Brisbane-based AAM Investment Group (AAM) has agreed to terms for the purchase of the N.F. McDonnell & Sons softwood timber processing business at Suttontown, which processes just over 400,000 tonnes of softwood log a year.
Finalisation of the sale is scheduled to be completed before the end of November.
Boasting a workforce of 125, the local company was founded in 1944 by sawmiller Newman McDonnell and his sons Don and Les.
All three men are now deceased but Newman’s grandchildren and great grandchildren are associated with the business he founded.
AAM iprovides strategic investment, asset management and operational management services, specialising in Australia’s primary industries.
N.F. McDonnell & Sons was identified as meeting AAM’s driving philosophy of investing in assets that are spread across diverse supply chains and geographic locations, and is reflective of the business’ firm belief in the strength of the Australian softwood processing industry and the Mount Gambier region.
News of the impending sale was announced by AAM in a statement last week.
“The Suttontown operation focuses primarily on the conversion of smaller diameter sawlogs into products for the pallet and outdoor market,” the AAM statement said..
“People, including the 125 now employed in the Mount Gambier area, have been at the heart of the success of N.F. “McDonnell & Sons for many years.
“AAM shares this commitment to investing in people, and can assure all staff we will follow the same strategy of expansion and employment in the local community.
“For us, the best possible outcome at the time of change of ownership will be the employees who worked at N.F. McDonnell & Sons on Friday returning to work on Monday, so that we can retain the critical knowledge and expertise of these people and continue the many established traditions of the business, while finding new opportunities for further growth.
“With more than 530 people already employed across 31 other sites in five states, one of AAM’s most important priorities is investing in a way that has real and positive outcomes for rural and regional communities, and the business looks forward to upholding the N.F. McDonnell & Sons legacy upon successful completion of the sale.”
N.F.McDonnell & Sons has been approached for comment.
