Work has started on a NZ$10 million investment program at a Blenheim sawmill, which will create up to 50 jobs over the next five years. Sources: The Marlborough Express, Stuff Co Nz
The sawmill, off Battys Rd, was taken over by Australian company Timberlink last September, after they bought the site from Flight Timbers.
Timberlink Australia and New Zealand chief executive Ian Tyson, who visited the site on Wednesday, said the upgrade would make the sawmill internationally competitive.
“The improvements are being rolled out end-to-end across the whole site,” he said. “Every part of the process has got some degree of investment to improve.”
In this financial year, the company expected to spend more than NZ$4 million on the upgrade, including the installation of two new Contra Flow Kilns.
The kilns would improve the efficiency of the sawmill and remove the drying bottlenecks taking place.
There was also an emphasis on health and safety, which involved the installation of guarding around machinery and staff training.
New scanning technology had also been purchased, to make the best cutting decisions and maximise yield from the logs.
At present, the sawmill processed around 100,000 tonnes of raw radiata pine a year, producing around 55,000 cubic metres of processed timber.
The upgrades would increase the efficiency of the milling process, reduce waste and allow the company to increase their yield.
Staff numbers were expected to increase over the next five years, from 86 to around 130.
Mr Tyson said for every job created at the sawmill, a further four or five would be created in the forestry industry or down the supply chain New Forests, the parent company of Timberlink, was also investing in Marlborough and was finalising the purchase of a forestry block from the Flight Group.
This would give the sawmill security of supply and also create an integrated processing model, where New Forests would log the timber and Timberlink would add value, Mr Tyson said.
Marlborough Mayor Alistair Sowman, who was also at the site visit, said the investment was good news.
“It’s one of our three big economic drivers, so to have a NZ$10 million investment in the timber industry shows Timberlink are committed to this region,” he said.