Billionaire Wolfgang Leitner looks to expand forestry 'hobby'

Wolfgang Leitner said he also hoped to invest in dairy farming in New Zealand but said under strict rules he is unable to.

An Austrian billionaire is making plans to expand his forestry "hobby" after a multimillion-dollar investment in Hawke's Bay land.

Wolfgang Leitner recently acquired Overseas Investment Office consent to buy the 800ha Ponui Station at Kotemaori, Wairoa for $8 million.

The station currently has 713ha in grazing for sheep and beef stock and 14ha of commercial forestry.

Leitner plans to convert 640ha of the grazing into commercial forestry, according to the OIO consent release.

Last October Leitner also received consent for a $4.5m 489ha sheep and beef farm near Gisborne.

The 66-year-old said he has for many years had a personal interest in sustainable forestry and farming.

"It's something I'm very passionate about," he said.

"I operate small PEFC-certified spruce forests in Europe as well as a eucalyptus and pine [pinus radiata] forest in South America."

The Programme for the Endorsement of Forest Certification is a leading global alliance of national forest certification systems.

"As an international non-profit, non-governmental organisation, we are dedicated to promoting sustainable forest management through independent third-party certification."

Leitner also has dairy farms in Europe and Chile and wished to invest in dairy farming in New Zealand but said under strict rules he is unable to.

Wolfgang Leitner recently acquired Overseas Investment Office consent to buy the 800ha Ponui Station at Kotemaori, Wairoa for $8 million. Photo / Bayleys

Leitner said he has known about the forestry industry in New Zealand for a long time with his company Andritz - of which he is CEO - supplying products to New Zealand companies and utilities. It is a global leader for hydro power and pulp production equipment.

"Above all New Zealand is a fantastic country with very likeable people.

"I plan to spend time there to explore more of its beauties. This could include some moderate additions to my forestry business/hobby."

His applications were approved under a special forestry test, brought in more than a year ago, to smooth the way for more forestry investment.

"The special forestry programme encourages converting marginal farm land into pine forest and grants carbon credits against committing to long-term, sustainable forestry," he said.

"This is the reason for me acquiring the farm."

With an estimated net worth of US$1.5 billion according to Forbes, ranking 1349 on its rich list, Leitner is a chemist by training but joined Andritz in 1987, was made CEO in 1994 and bought a 26 per cent stake in the company in 1999.

He eventually turned Andritz into one of Austria's largest companies and a global giant.

Leitner comes from a somewhat modest background with his father also having worked for Andritz, serving the company for three decades as a metal worker.

His wealth stems from the sale of Pharmavit, part of pharmaceutical outfit Genericon which he founded, for $110m in 1995 helping towards his buy in to Andritz.