Global methanol producer Methanex Corporation is reopening its Taranaki plant and significantly expanding its production.
After securing a new natural gas supply, the Canadian-based company has confirmed plans to restart its methanol plant in the Waitara Valley towards the end of the year.
The plant was shut down in 2005 because of a shortage of gas but Methanex says the new supply will keep it going for years to come.
The gas supply agreement is in addition to another announced last November and will add a further 500,000 tonnes of methanol production.
Methanex will also increase its capacity at its Motonui site.
Methanol is a petrochemical used with petrol and in a wide variety of products, from plastics to pharmaceutical products.