About 120 new jobs are expected to be created through a new multimillion-dollar wood processing plant in New Zealand that could have a global impact on the building industry. Source: The New Zealand Herald
In what was described as a “landmark decision” Eastland Community Trust confirmed it would invest NZ$4.7m into a joint venture with Wood Engineering Technology Ltd (WET) at the former Prime sawmill.
WET managing director Peter Pettit said the NZ$9.4m joint-venture, WET Gisborne Ltd (WGL), would turn lower-grade logs into high-value structural lumber would create 120 direct jobs over the long term.
“Our patented process allows a lower grade log from Radiata pine plantations to be manufactured efficiently into engineered wood products. This Optimised Engineered Lumber (OELTM) is a direct substitute for structural lumber, ideal for house building because of its strength and rigidity,” he said.
Mr Pettit said it was a process that would fundamentally change the economics of sawmilling for engineered structural timber products globally, while making much more efficient use of the East Coast’s renewable raw materials.
“Our manufacturing process uses logs that are low value and currently exported, generally to Asian markets for disposable packaging or concrete form work. Given the quality of the finished product, the OELTM process adds significant value,” he said.
“The OELTM process also extends the use of our valuable forest resource with the potential to use wood which was previously burned, left to rot or used to produce disposable, single use products.”
The Prime site will become the home of WGL’s first commercial-sized modular plant, which will have the capacity to produce 50,000 cubic metres of OELTM per year, enough to build approximately 4000 New Zealand houses.
The new funding brings the amount ECT have invested into the project to NZ$12.1m, after the trust last year approved the release of NZ$7.4m to buy the Prime site, with the aim of creating a wood processing “cluster” and centre of excellence at the former Prime Sawmill.
That was the biggest single investment decision in the trust’s history.
ECT general manager Leighton Evans said the joint-venture with WET represented an exciting direction for ECT and was a move that would enhance its ability to have a measurable, positive impact on the economic health of our region.
“We have made a significant strategic investment in our community, on behalf of our community. Our mandate, the partners we have chosen to work with and the governance structure we have put in place gives us confidence that this is a project that will make a real difference.”
ECT and WET have each appointed two directors to the Board of WGL.
Mr Evans said they were also very pleased to have secured the services of Michael Andrews as independent chairperson. Mr Andrews was directly involved in the establishment and planting of what is now Hikurangi Forest Farms, is a past director of Eastland Port and Eastland Network, and had a career of more than 35 years with Fletcher Challenge culminating as CEO and a director.
Mr Evans said this was the beginning of a long term commitment for WGL.
The first plant will be built in three stages, phased to add capacity as required to satisfy the expected growth in demand for the product.
It would take about 18 months for the first stage the plant to be fully operational.
“Site works have just begun with the deconstruction of one of the vacant port storage sheds, which will be erected on the Prime site. By March 2017, management intend the plant will be installed and the mechanical commissioning phase complete. During this time the site will create seven jobs and inject $1 million in to the local economy,” he said.
“Once the plant is operational, expected to be late 2017, it is anticipated it will create 20 jobs directly, increasing to 40 jobs directly as the other stages are phased in. In the long term, there is an opportunity to grow to three full-sized plants on the Prime site.”
