Support for wood processing
THE PROVINCIAL GROWTH FUND (PGF) is ramping up support for Tairāwhiti’s wood processing sector to bolster the region’s economy at a time of heightened uncertainty, says Forestry Minister Shane Jones.
In addition to the regional support package for Tairāwhiti, Minister Jones has announced a $12.1 million loan from the PGF for WET Gisborne.
The funding will accelerate the development of WET Gisborne’s wood processing production line, which will produce a laminated structural wood product at the Wood Cluster Centre of Excellence located in Gisborne.
“I’m pleased we’ve been able to work alongside the region on projects that will help diversify the forestry sector, which is overly reliant on log exports to China,” says Mr Jones.
“The PGF support will allow construction to begin on the production line and is part of a wider focus on wood processing that is expected to create 74 new jobs in coming months. Work is about to begin on the first phase of the production line that will increase capacity from 3.5 days per week to a 24-hour/seven-days-a-week operation. The second phase, which will establish New Zealand’s first fully commercial scale line, will start next summer,” Mr Jones says.
In addition to the loan, Regional Economic Development Ministers have also approved a $980,000 loan towards the Wood Cluster Heat Plant, which is “integral to the overall success of the region’s wood processing aspirations”.
“Wood processing is one of the biggest economic growth opportunities in Tairāwhiti. This production line will lead to higher-value forestry products being produced locally and develop new economic growth in the forestry industry.
“The engineering work required to build the processing line and heat plant will ensure job continuity for local engineering firms,” he says.
“While New Zealand and the world is experiencing an economic shock, PGF projects are primed to help place the country on an excellent footing post–virus,” adds Mr Jones.