Ann: Spicers enters into a Scheme Implementation Deed with KPP, page-21

Spicers in $2.85 million Burnie 'Pulp' land sale deal

• Sean Ford

BIG PROJECT: Wind farm components stored on former "Pulp" land in Burnie. The land, owned by Spicers Limited, is earmarked for sale to two North-West businessmen. Picture: Brodie Weeding.

A large parcel of former “pulp mill” land in Burnie is set to be sold.
Owner Spicers Limited has agreed to a $2.85 million sale to North-West businessmen Shane and Steven Groves, as trustees of the 29 Scarfe Street Unit Trust.


The land at 7-15 Reeves St is south and east of the Bunnings site.
It is the last part of the former “Pulp” site owned by Spicers, and has recently been used to store wind farm components for a big West Coast development.
The sale going ahead will depend on the Burnie City Council granting the Groves brothers a permit for a slip road off Reeves St.
Shane Groves said the council had said the road could be constructed, but an application and an engineer’s design would be needed.
We reckon it’s a prime location for the port.
Shane Groves
“It’s looking promising,” he said.
Mr Groves was not prepared to talk about definite plans for the site, beyond its current use for the wind farm components.
“We reckon it’s a prime location for the port,” Mr Groves said.
“It’s a bit of a gamble, but you’ve got to take them.
“We wanted to keep it (in) local (ownership) and see what happens.”
The Groves brothers are involved with an earth moving business and a bluestone quarry.
Spicers chief executive David Martin said Spicers would make an announcement to the market once the sale was settled.
The sale will be by Spicers subsidiary Tas Paper.
In late November, Spicers expected the sale to be completed within 120 days.
It said it would recognise a net post-tax gain of $2.85 million in its 2018-19 result once the sale was complete.
Spicers also has a former paper making site at Wesley Value up for sale.
The property, owned by Tas Paper, is at 226 Mill Rd.
A sale by tender process was announced for the land and buildings in late November, with a closing date of December 14.
Mr Martin said the property was still being marketed and there were interested parties.
Spicers, meanwhile, is targeted for a takeover.
Japanese-based paper distributor Kokusai Pulp and Paper Co Limited aims to acquire all Spicers shares.
Spicers directors have unanimously recommended shareholders vote in favour of the offer, provided no superior offer emerges and an independent expert determines the deal is in shareholders’ best interests.