Johannesburg — AURORA Empowerment Systems, which recently announced plans to take over JSE-listed Cenmag Holdings, has bought one of the region's largest forestry and sawmill operations in Zambia and hopes to develop it to meet the high demand for timber in SA and export markets.

The acquisition is part of Aurora's expansion strategy, which CEO Zondwa Mandela said included investing in sectors such as tourism and mining in emerging economies, with particular focus on viable projects in Africa.

The company was already finalising the details of more investments in mining, which would be announced in the next few weeks, he said.

"We have acquired Redwood Timber Merchants and its subsidiaries, Natural Africa Timbers and Zambezi Sands, for R93,5m. The acquisition is one of a kind as the company owns one of the largest timber concessions in the southern hemisphere and has timber valued at about 130m covering about 80000ha and equivalent to about 300000 cubic metres of timber," Mandela said.

Aurora planned to nominate Cenmag as the purchaser of Redwood Timber Merchants, subject to JSE listing requirements.

The timber firm owns and operates one of the largest sawmills in the region and specialises in harvesting various tree species. It also makes finished timber products like flooring, doors, windows and laminated beams.

The company said in a stock exchange announcement yesterday that the acquisition would be the first step towards the proposed consolidation of the regional timber industry.

Mandela said Aurora would increase output of sawn timber to meet demand, which was outstripping supply in local and export markets. Export markets included Mozambique, Angola and, further afield, the Middle East and Europe.