Source: MIL-OSI Submissions
OneFortyOne has committed to invest $11 million dollars in its Kaituna Sawmill over the next three years.
General Manager of Kaituna Sawmill Tracy Goss said the $11 million investment consists of three major projects to increase the sawmill’s drying and treating capacity.
“By purchasing new equipment, we will be able to extract greater value from each log, meaning more local timber can be produced for New Zealand’s housing market.”
“In the past 10 years the sawmill has achieved a 46% reduction in the site’s greenhouse gas emissions. A suite of environmental improvements has been made, from small to significant. A state-of-the-art Biomass Energy Centre and continuous drying kiln installed in 2016 has reduced the sawmill’s carbon footprint by 934 tonnes of carbon dioxide equivalents per year.
“Reducing our footprint by another 265 tonnes annually is significant and a great example of where actively deciding to monitor and invest in reducing our carbon footprint leads to better business and community outcomes.
“It’s an exciting project and it represents the first major capex investment from OneFortyOne since acquisition of Nelson Forests,” said Mr Goss.
Speaking at the announcement Regional MP Stuart Smith said: “I congratulate OneFortyOne and Kaituna Sawmill for making this significant investment in our region and in New Zealand’s timber industry which will increase supply and create local jobs.”
“The majority of the timber products will be consumed by the local building and construction industry.”
The project is scheduled to begin in April 2022.
- Represents first major capex from OneFortyOne since acquisition of Nelson Forests.
- Majority of capital (over two thirds) will be with NZ suppliers (kiln and treatment plant).
- Regional employment – will create four jobs locally.
- Positive carbon footprint impact (265t of CO2 savings annually – c. 50+ annual car emissions estimated to be reduced largely from reduced haulage to third party drying/treating).
- Kaituna Sawmill has been in operation since 1985. Australia-based OneFortyOne purchased Nelson Forests (including Kaituna Sawmill) in September 2018.
- The sawmill has increased its capacity by 40% over the past 2 years.
- 70% of what is produced at Kaituna Sawmill is sold domestically.