China's largest forestry company is looking at building a state-of-the-art sawmill in Taupo, which could create more than 250 jobs and pump millions into the region's economy.
Lake Taupo Photo: 123RF
Taupo District mayor David Trewavas said Fenglin Wood Industry Group began a feasibility study this week and the project could get the go-ahead early next year.
The plant, which will cost about $250 million to build, will make laminated veneer lumber and other products in high demand in China, Mr Trewavas said.
Taupo District Council and economic development agency Enterprise Great Lake Taupo have spent two years looking for an investor interested in making value-added products.
"Being in the centre of the North Island in the centre of the largest coniferous forest in New Zealand, why can't we instead of sending logs all this time find a manufacturer that will make a specialist product out of the good timber that we produce?"
Mr Trewavas, who returned from China last week, said currently about half the logs exported by New Zealand had no value added.
China took about 70 percent of New Zealand's timber.
Fenglin Group chairman Cui Jianguo said the project would be "a true win-win deal", with more jobs for New Zealand and a higher quality product for China.
"We will have a higher quality product as radiata pine is far superior to the eucalyptus that we currently process," he said in a statement.
The project would also be better for the environment as there would be less wood waste, he said.
