Source: New Zealand Government
Value-added wood processing is showing its potential in commercial construction, says Forestry Minister Todd McClay at the opening of Red Stag’s new VoMo factory in Rotorua.
The Government is investing $3.2 million through the Primary Sector Growth Fund to support the VoMo (Volumetric Modulation) project, alongside Red Stag’s $4.8 million contribution, taking total investment to $8 million over three years.
“New Zealand grows some of the best timber in the world. Advanced timber construction offers a real opportunity to lift productivity, reduce build times, and create high-value products from New Zealand wood,” says Mr McClay, who was at the plant opening alongside Prime Minister Christopher Luxon.
Mass timber modules are prefabricated in a factory before being transported to site for rapid assembly. The Rotorua facility will develop and test pilot modular buildings to assess performance under New Zealand conditions, including seismic resilience, productivity gains, carbon benefits, and commercial viability.
The project is expected to deliver substantial economic benefits and support demand for products such as cross laminated timber and other engineered wood products. Potential applications include multistorey commercial buildings, housing, education, health, tourism and retirement living.
Mr McClay said the project aligns with the Government’s focus on growing regional economies and increasing investment in value-added processing. “This technology could open up new domestic and export opportunities for our wood processing sector while supporting growth right across the supply chain. The facility reflects the importance of projects like this to New Zealand’s economic growth and manufacturing future.”
Original source: https://nz.mil-osi.com/2026/08/03/rotorua-opening-shows-future-of-value-added-wood-processing/