Japanese-owned Pan Pac Forest Products will pour NZ$23million into doubling capacity and creating jobs at its Milburn sawmilling plant just South of Dunedin. The company bought part of the former Southern Cross Forest Products company out of receivership 14 months ago, Otago Daily Times reported.
Pan Pac, a subsidiary of Japanese company Oji Group Holdings, plans to double processing of mainly export grade radiata pine to 100,000 cum per year, boost jobs at Milburn, just north of Milton, from 29 to 35, and create site capacity for further expansion.
Pan Pac general manager Michael Reaburn said the company would initially continue to operate from both the existing Milton and Milburn sites during construction, but the aim was for a single 'state-of-the-art production facility' at Milburn, doubling existing capacity.
"The plan involves building a new kiln and installing a new boiler at the Milburn mill. Construction will take just over a year and is due for completion in April 2017," Mr Reaburn said. Work was due to start next month, using local contractors and suppliers, but Mr Reaburn said some specialist equipment would need to be imported from Europe and North America.
"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 concluded.
Pan Pac was established in New Zealand 43 years ago, with a sawmill and pulp mill north of Napier in Hawkes Bay, owning 35,000ha of forests, employing 370 staff and 450 contractors from around the region. Pan Pac has a turnover of more than $350million annually, exporting to China, Japan and the US, plus some domestic sales.
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