XLAM Commences Process to Seek New Owner

Today, the Hyne Group announced it has commenced a strategic review of its XLAM Cross Laminated Timber (CLT) manufacturing business. Whilst XLAM has been the southern hemisphere’s pioneer and leading manufacturer of CLT, the division’s specialist focus on the commercial construction sector has limited alignment with the Hyne Group’s continued targeted expansion in Australia and New Zealand, nor does it fit with the long-term strategy of the Group’s parent company, James Jones & Sons Ltd.

The review will assess all scenarios, but the preferred outcome is to secure a new owner with the capability, passion and commitment to build on XLAM's strong foundation, continuing to manufacture Cross Laminated Timber and providing specialised design and engineering services that support sustainable, carbon-storing construction throughout Australia, New Zealand and the broader southern hemisphere.

The Group has therefore commenced a formal process to seek expressions of interest from suitably qualified parties within Australia and New Zealand, as well as North America and Europe.

XLAM remains very well positioned to benefit from the growing adoption of ‘Modern Methods of Construction’ and demand for innovative building solutions. These include prefabricated and modular building systems, hybrid timber construction and vertical building extensions, where the strength-to-weight advantages and carbon storage benefits of Cross Laminated Timber continue to build market share and market penetration.

Hyne Group Chief Executive Officer Jim Bindon said the Group remained optimistic that a suitable purchaser could be found while being transparent with employees, customers and stakeholders about the process.

"Over the past 14 years, the XLAM team has established the business as Australia's leading Cross Laminated Timber manufacturer, delivering some of Australia and New Zealand’s most innovative and award-winning timber buildings while genuinely advancing the use of sustainable construction."

"Our clear preference is to see XLAM continue under new ownership, preserving its manufacturing capability, specialist expertise and the opportunities it creates for our people, customers and the broader construction industry."

"XLAM is a highly respected business with world-class manufacturing capability, experienced technical expertise and an enviable portfolio of landmark projects. We believe it offers a compelling opportunity for an organisation whose long-term strategy is centred on mass timber, prefabricated and modular construction, and the commercial construction industry.”

The Hyne Group will work closely with employees, customers, suppliers and government throughout this process and will provide further updates as appropriate.

Those who wish to explore this opportunity further should contact the Hyne Group’s General Manager, Corporate Affairs, Katie Fowden in the first instance on katie.fowden@hyne.com.au.

Further information on XLAM can be found at www.xlam.co