Winstone Pulp International, which almost closed its Gisborne sawmill last year due to the high value of the New Zealand dollar, has now invested $1 million in new equipment at the plant.
The mill produces sawn timber for the housing market in the United States.
Last August, the company reversed a decision to close the Prime mill, but cut employee numbers from 65 to 20.
Managing director David Anderson says the plant continues to operate on a month by month basis.
However, since then, business has picked up and the New Zealand dollar has dropped in value.
As a result, Mr Anderson says the number of temporary workers has been increased.