Oji's Pan Pac forestry unit to expand Milburn mill
Capacity at sawmill to be doubled.
Hot Topic
SCIENCE
Japanese-owned Pan Pac Forest Products will pour $23 million to expand capacity at its sawmilling and drying facilities in Milton and Milburn Otago.
The company bought part of the former Southern Cross Forest Products out of receivership 14 months ago.
The company plans to consolidate operations at the Milburn site, which will be redeveloped. Work will start next month and is slated for completion in April 2017.
"We'll continue to operate from both Milton and Milburn during construction, but the aim is a new, single-site, state-of-the-art production facility that will double existing capacity," Pan Pac Forest Products general manager Michael Reaburn says.
The two plants produce 50,000 cubic metres of radiata pine lumber from Otago and Southland a year. When the expansion is completed, Milburn will produce 100,000 cubic metres, with site capacity for further expansion, he says.
About 85% of the product is exported and shipped through Dunedin's Port Chalmers.
The Milton operations will be closed once Milburn is upgraded and operators will transfer to the expanded facility, with total staff numbers expected to increase to 35 from 29 across both sites.
Pan Pac was established 43 years ago with a sawmill and pulp mill at Whirinaki, north of Napier, and owns 35,000 hectare of forests.
Otago marks the company's first expansion outside of Hawke's Bay, where it employs 370 staff and 450 contractors. The company has annual turnover of more than $350 million and exports to China, Japan and the US.
"The Otago operation is an important part of our growth plan and helping meet the expanding demand for lumber in the Asian market," Mr Reaburn says.
(BusinessDesk)
Tina Morrison
Fri, 15 Jan 2016
Fri, 15 Jan 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Oji's Pan Pac forestry unit to expand Milburn mill
54737