Friday, 20 March 2020 11:00

$12.1m Government loan for wood processor

Written by  Staff Reporters
Regional Economic Development Minister Shane Jones. Regional Economic Development Minister Shane Jones.

Tairāwhiti’s wood processing sector will receive funding through the Provincial Growth Fund (PGF) to support the local economy amid the Covid-19 pandemic.

Regional Economic Development Minister Shane Jones announced today that WET Gisborne Ltd will receive a $12.1 million loan.

The funding will accelerate the development of WET Gisborne Ltd’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 Jones.

“This investment is another way the Government is supporting Gisborne and the wider region as the forestry industry experiences the effects of Covid-19. 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 24hr/7days-a-week operation. The second phase, which will establish New Zealand’s first fully commercial scale line, will start next summer,” says Jones.

In addition to the loan, regional economic development ministers have also approved a $980,000 loan towards the Wood Cluster Heat Plant. 

More like this

All hot air?

OPINION: While The Hound reckons it's great to see Shane 'I'm-a-red-blooded-male' Jones boiling over about the energy crisis - so much so that he's dropping f-bombs in the daily rags - your old mate hopes we'll see more than his usual bluster and get real action on this critical issue.

Full steam ahead with clean energy from forestry waste

While the vehicle industry is addressing the future by developing engines that run on waste oil, hydrogen, or indeed electricity, one Christchurch-based company is looking at things in a different direction with the use of steam.

Red meat sector battles on

It's a bloody tough year for sheep farmers, but the worst may be over, and the future looks optimistic.

Featured

Massey Research Field Day attracts huge interest

More than 200 people turned out on Thursday, November 21 to see what progress has been made on one of NZ's biggest and most comprehensive agriculture research programmes on regenerative agriculture.

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo being once again hosted in Wairoa in February.

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make an early November dash to Bologna to the 46th EIMA exhibition.

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

National

Winter grazing warning

Every time people from overseas see photographs of cows up to their hocks in mud it's bad for New Zealand.

ANZ defends farm lending rates

The country's largest lender to the agriculture sector says it's not favouring home loans over farm and business lending.

Machinery & Products

Expo set to wow again

Stellar speakers, top-notch trade sites, innovation, technology and connections are all on offer at the 2025 East Coast Farming Expo…

A year of global challenges

As a guest of the Italian Trade Association, Rural News Group Machinery Editor Mark Daniel took the opportunity to make…

» Latest Print Issues Online

The Hound

Review SOEs!

OPINION: NIWA has long weathered complaints about alleged stifling of competition in forecasting, and more recently, claims of lack of…

Bank reset

OPINION: Adding to calls to get banks to 'back off', NZ Agri Brokers director Andrew Laming has revealed that the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter