Clutha district's mayor says at least 30 jobs will be created after a Japanese forestry company purchased two mill sites in Milton.
About 180 jobs were axed at Southern Cross Forest Products' Otago sites earlier this year when the company went into receivership.
The district's mayor, Bryan Cadogan said the Japanese-owned company PanPac was given approval by the Overseas Investment Office this week to buy the two Southern Cross sites in Milton.
Mr Cadogan said a large number of logs were nearly ready to be milled and it would have been a shame if they had been sent overseas.
He said now that PanPac had been given approval, about 30 jobs would be available in the new year.
Mr Cadogan said the company was also planning to upgrade one of the sites, which may create further jobs.
