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August : Supply Agreement with Green Resources

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7 August, 2019

Supply Agreement with Green Resources

Supply Agreement with Green Resources

Dolphin Bay has signed a three-year sole-supplier agreement with the Norway-based Green Resources AS group, cementing a long-standing relationship.

We have been supplying Green Resources' Sao Hill plant in Tanzania and another member of the group, Busoga Forestry Company in Uganda, for some time. We will also supply the company's Niassa Green Resources plant in Mozambique as the local market develops. "This agreement takes the relationship to the next level," said Green Resources CEO Hans Lemm.

"Aside from Dolphin Bay's provision of quality raw materials, we have enjoyed excellent technical support from them. The quality and value of this support has been the main reason we wanted to cement the relationship."

Green Resources has 38,000 ha of standing forest in Mozambique, Tanzania, and Uganda. It operates the largest sawmill in Tanzania, and has electricity pole and charcoal plants in Mozambique, Tanzania and Uganda.

In March 2019 Dolphin Bay optimised and re-commissioned the Niassa plant, following a significant upgrade for the group's Busoga plant in Uganda.

Niassa's trees are reaching maturity and the company decided to treat its own timber, to benefit from the growing market in Mozambique for treated poles. This required the refurbishment of the treatment plant, which had been mothballed many years ago.

"Dolphin Bay has helped us to assess the plant and identify problems," said Arlito Cuco, MD of Green Resources in Mozambique. "Their work has included designing a layout for the log yard and, more recently, helping us fix up the plant. The quality of Dolphin Bay's work is good, and when we need support, we get a response from them on time. The plant is now operating properly."

The Niassa plant has listed as a supplier with the state-owned power company Electricidade de Moçambique and is well on the way to being an approved supplier. EDM currently obtains poles from South Africa and Zimbabwe, but not from within Mozambique itself. The Niassa plant will be the first timber treatment plant in Mozambique of its kind, which brings opportunities for creating local jobs and boosting local industry.

EDM currently obtains poles from South Africa and Zimbabwe, but not from within Mozambique itself. The Niassa plant will be the first timber treatment plant of such scale and capacity in Mozambique.

During the 2018/19 financial year, Green Resources supplied around 70 000 transmission poles, as well as 20,000 building and fencing poles, to its customers. The majority of those went to support rural electrification projects. "As a result, Dolphin Bay and Green Resources are very closely linked to the electrification of rural areas in Africa and our companies are making a positive impact on people's lives and futures," said Hans.

"We are very happy to partner with Green Resources and hold dear the trust they have placed in us," said Bertus. "We value having a customer working with us on this level, which validates the effort we put into our service and gives us reason to do even more for our customers."

Source: Dolphin Bay Chemicals