Pan Pacific Forest Products (Otago) Limited is expanding and consolidating its local operations to meet growing demand for wood by Asian markets.
Pan Pac general manager Michael Reaburn says the plan involves consolidating operations and roles at the Milburn site that will be substantially redeveloped to meet export market growth.
“The Otago operation is an important part of our growth plan and helping meet the expanding demand for lumber in the Asian market,” he says.
Reaburn says the two plants at Milton and Milburn currently produce 50,000 cubic metres of radiata pine timber from Otago and Southland a year.
Upon completing the project, Milburn will be producing 100,000 cubic meters, with site capacity for further expansion.
“About 85% of the product is for the export market, and we intend to ship the product out through Port Chalmers,” says Reaburn.
“The project 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.
“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.”
“We currently employ 29 people across both locations – that will increase to 35 once Milburn is up to speed.”
Reaburn says the aim is to use local contractors and suppliers wherever possible, with work due to start this February.
“We expect the kiln will be locally sourced however some specialist equipment will need to come from Europe and North America,” he says.
Pan Pac bought the sawmilling and drying assets at Milburn and Milton in November 2014 when the previous owner Southern Cross Forest Products was in receivership.
