Crown research institute Scion and Bay of Plenty Regional Council have entered a partnership aimed at pushing forward innovation in the forestry and wood processing industries.
Scion successfully bid for funding through the council's inaugural regional infrastructure fund, receiving $2.5 million to build a dedicated centre.
The regional council says the project to be built at Te Papa Tipu Innovation Park has potential to provide a significant economic boost to the wider region.
Scion chief executive Warren Parker said the centre will help the industry meet its goal to increase New Zealand forestry-related export earnings from about $5 billion to $12 billion by 2022.
He said the centre will create new capital, expertise and technology to the forestry and wood processing industry which the Bay of Plenty region has a 35 percent stake in.
Construction of the Scion Innovation centre is expected to begin towards the end of the year with building completed by the end of 2015.