The company was originally established in Popondetta; Oro Province during the early 1970's and operated under the name of Northern District Sawmilling & Timber Co. Ltd. and was owned by the Constantinou Group of Companies. During 1987/8 the company was relocated to 9 Mile on the outskirts of Port Moresby and supplied 40% of the local market with logs and processed timber products with its main concentration being in the National Capital District.
During the early years it operated Timber Permit Authorities (TP's) which are timber concessions licensed by the PNG Forest Authority for a given allowable annual harvestable volume. As the company expanded it increased its downstream processing capacity to include Milling, Planning, Dressing, Moulding, Kiln Drying and Pressure Treating. Later additions to the company’s vertical integration includes a Joinery Division producing exotic furniture and kitchen units and also a Building Division producing a range of standard or custom pre-fabricated homes and offices.
In March 2006 the company was appointed as developer in a 35 year Forest Management Area Project in the Cloudy Bay area which is in Abau District 250 kilometres South East of Port Moresby. This is the first 100% downstream processing license to be issued by the PNG Forest Authority and comprises 148,900 Hectares gross area for selective logging of trees over 50cm DBH with an annual allowable harvest of some 60,000m3.
The Project Development Agreement entered into between the company and the PNG Forest Authority requires that in addition to the normal harvesting and re-planting activities, the company will invest in a range of infrastructure development deliverables over a 20 year period. This infrastructure includes schools, teachers housing, dormitories, health centres, churches, sports facilities, a Police Station, jetties, roads, bridges and crossings. It also requires the company to actively assist in the socio-economic development of the land owners within the Forest Management Area concession. The total concession is home to some 6,000 inhabitants with six official language groups.
In 2007 the company changed its name to Cloudy Bay Sustainable Forestry Ltd and in July 2007 an 80% shareholding was taken up by PNG Sustainable Development Program Ltd. with 20% remaining with the Constantinou Group of Companies. In January 2010 the remaining 20% was taken up and the company became a 100% subsidiary of PNG Sustainable Development Program. A Board of Directors was appointed to manage the company during theis transition phase and in June 2009 a new Board of Directors was appointed to guide the company through its future growth phase.