US $10m investment in forestry to create up to 200 jobs

Rotorua MP Todd McClay has welcomed the announcement of a new joint venture in Rotorua to create up to 200 jobs in the forestry sector.

Mr McClay who hosted a signing ceremony today to mark an agreement by American company American Pine & Rosin Derivatives to invest $12 million into a local start-up said that this is fantastic news for Rotorua and New Zealand.

This decision means that local company Pacific Pine Derivatives will now move ahead with planning and consenting for a revolutionary new plant to be built in Kaingaroa turning forestry waste into valuable commodities.

Mr McClay said that he congratulated CEO of Pacific Pine Derivatives, Ray Mountford, for working hard to make this venture a reality.

“I first met with Ray 2 years ago when he was moving his business from Fiji back to the Bay of Plenty. At that time I recognised the huge potential this initiative had for Rotorua in terms of growth and jobs in our local economy and I have worked to support him and to make a case for this plant to be based in the Rotorua district.”

This process designed by Mr Mountford with take tree stumps from the forest and process them to produce Terpin and resin used in the manufacture of paint, paint thinners and ink as well as food additives and fillers.

Mr McClay said that the forestry industry had been hit particularly hard by the recession. “Whilst log prices have remained high, job growth had shrunk over a number of year. This announcement of up to 200 jobs is a vote of confidence in forestry and a vote of confidence in Rotorua.”

Mr McClay said that the next steps were to get consents in place. “I will be supporting these companies to ensure that agreement for building the plant is given in the shortest possible timeframe”.

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