Fletcher Forests invests in Zenia House

Fletcher Challenge Forests (FCF) today confirmed it had bought a 20 per cent stake in Danish solid wood furniture manufacturer and distributor Zenia House.

FCF said in a statement to NZX the stake cost about $1 million.

Zenia would actively promote FCF's high quality radiata pine clearwood for use in the European solid wood furniture market, while FCF would supply all of Zenia's future requirements.

FCF chief executive John Dell said the both companies believed clearwood had "significant opportunities" in the solid wood furniture market.

"This partnership provides the company with the ability to explore a new market for higher-value products from its mills, and provides our Danish partners with an efficient and reliable source of furniture components," Mr Dell said.

At 11.10am, FCF shares were unchanged on $1.36.

Earlier today the company said the Overseas Investment Commission had approved Kiwi Forest Group consortium's bid to buy the lion's share of its 106,000ha forest estate for $560 million.

FCF shareholders have yet to approve the deal at an annual meeting on Friday.

- NZPA