China’s largest forestry company is looking at building a state-of-the-art sawmill in Taupo, which could create more than 250 jobs and pump millions into the region’s economy. Sources: Radio New Zealand, 3 News
Taupo District mayor David Trewavas said Fenglin Wood Industry Group has begun a feasibility study and the project could get the go-ahead early next year. The plant, which will cost about NZ$250 million to build, will make laminated veneer lumber and other products in high demand in China, Mr Trewavas said.
Taupo District Council and economic development agency Enterprise Great Lake Taupo have spent two years looking for an investor interested in making value-added products.
“Being in the centre of the North Island in the centre of the largest coniferous forest in New Zealand, why can’t we instead of sending logs all this time find a manufacturer that
will make a specialist product out of the good timber that we produce?” he said.
Mr Trewavas, who returned from China recently said that currently about half the logs exported by New Zealand had no value added.
China took about 70% of New Zealand’s timber.
Fenglin Group chairman Cui Jianguo said the project would be “a true win-win deal”, with more jobs for New Zealand and a higher quality product for China.
“We will have a higher quality product as radiata pine is far superior to the eucalyptus that we currently process,” he said in a statement.
The project would also be better for the environment as there would be less wood waste, he said.
Enterprise Great Lake Taupo says it has been working for two years to find someone to build, own and operate a new sawmill, laminated veneer lumber and medium density fibreboard plant in Taupo. The project is being supported by NZ Trade & Enterprise, the New Zealand government trade agency. The plant could potentially employ 250 people.
“The support of the Taupo community and the local and central government will be essential to our success,” the Chinese group’s chairman, Cui Jianguo, said after visiting Taupo.
Enterprise Great Lake Taupo general manager Fritz Frohlke said the project will be hugely beneficial to the Taupo economy.
There are large pine plantations in the central North Island but a lot of the land has been converted to dairy farming after forests have been harvested.
The government put the brakes this month on the sale of the 14,000-hectare Lochinver Station to Chinese company Shanghai Pengxin. China’s Citic has previously owned forest cutting rights in the central North Island.
