$50 million expansion planned for Northland Mill

WHANGAREI - Timber processing giant Juken Nissho has unveiled plans for an up to $50 million expansion that would double the capacity of its new Far North mill at Kaitaia.

Resource consent applications for the expansion - which could almost double the workforce with 70 new jobs - were filed with the Northland Regional Council this week.

Juken Nissho (JNL) is a Japanese-based company best known as the operator of a controversial Far North triboard mill, which began operating in 1990 and which some residents claim is linked to their ill health.

JNL's new $50 million Northland Mill will be next to the Whangatane Dr triboard facility.

The triboard facility was built to process increasing amounts of timber from the 30,000ha of exotic Northland forestry the company owns the cutting rights to.

Between them, JNL's triboard and Northland Mills produce 100,000 tonnes of processed saw log, triboard and veneer annually for both the New Zealand and international markets.

Juken Nissho is planning a public meeting at Kaitaia on August 2 to outline its expansion plans to the local community.

Assistant Northland Mill manager Vince Burgess said depending on its final configuration, the mill expansion could cost $30 million to $50 million.

"The Stage Two expansion will almost double the number of jobs at the Northland Mill (from about 80 currently) and will lead to further downstream economic benefits for Kaitaia, the Far North district and Northland region."

He said there would be 370-410 direct jobs in the Kaitaia area (Northland Mill, triboard mill and JNL forests) and $21 million to $27 million per annum in downstream income in the Far North district and Northland region.

- NORTHERN ADVOCATE