NZFFP To Fast-Track Ruakaka Expansion Plans
Thursday 28 November 2019
N.Z. Future Forest Products Ltd (NZFFP) has announced it will fast-track a new sawmill and manufacturing capacity at Ruakaka following the completion of its strategic transaction with North Sawn Lumber Ltd (NSL).
The Managing Director of NZFFP, David Henry, said the expansion will create 30 new full-time equivalent jobs in Ruakaka, providing new high-quality and long-term employment opportunities in the Northland region.
The expansion will allow for additional premium wood products to be containerised and shipped from Northport. It will generate an additional $40 million in annual export receipts for New Zealand, mainly from NSL’s existing markets in South East Asia and also to new customers in Europe. This export growth strategy is in addition to continuing to service all of NSL’s existing domestic customers to the same high levels.
The expansion, previously scheduled not to start until late 2020, will now commence in Q1 2020 with commissioning due to occur in Q4 2020.
As previously indicated, NSL’s Garth Mortensen and Grant Syminton have now joined the NZFFP board as Director of Operations and Non-Executive Director respectively.
The acquisition of the Claymark group, which employs 600 people across six manufacturing sites in the Upper North Island, remains on track.
Mr Henry said NZFFP was strongly in growth mode. A further announcement on changes to NZFFP’s capital structure, including a widening of its shareholder base, will be made in due course.