Carter Holt sawmill would create up to 250 jobs

1.00pm

A proposal to build a "supermill" at Marsden Pt could create 250 jobs.

Carter Holt Harvey this week announced it was considering building a mill capable of processing 800,000 tonnes of logs a year - at a cost of between $100 million and $150 million - at either Marsden Pt or at its Kinleith pulp-and-paper mill, 7km south of timber town Tokoroa.

It also announced that it would keep Timberland forests in Northland and the central North Island, while unloading about $400 million worth of forests throughout New Zealand. In Northland's favour is the company's ready access to the Marsden Pt deepwater port and the high quality of the region's wood.

The mill would be by far the largest in the country.

News of the proposal comes hot on the heels of two other major enterprises at Marsden Pt - Mighty River Power's plans to refire the mothballed Marsden B power station using coal which could create 100 jobs and the Marsden Pt Oil Refinery $180 million Future Fuels upgrade with the potential for 300 jobs.

Carter Holt spokesman David Jamieson said the project was still in its very early stages.

"It's still very much a proposal."

If the company proceeds with the project it would create between 200 and 250 direct jobs.

"We've made no secret of the fact we've been looking at establishing a wood-processing factory in the North Island, but we haven't made any decisions," he said.

"We bought land near our (Marsden Pt) LVL plant when we had an opportunity to purchase the land. It was a good opportunity."

The proposed mill would specialise in timbers used for construction.

Whangarei Mayor Pamela Peters said Carter Holt had been active in the planning processes in Marsden Bay for years.

"They know of the strategic importance and proximity of the forests, the port, Auckland and the labour markets," she said.

Whangarei Work and Income public relations adviser Clare Blackburn said the prospect of having the mill in the area represented a major employment opportunity for Whangarei.

Carter Holt's wood products chief Ian Unwin said the Northland forests were a valuable resource.

Northland forests, which are maturing for the first time, produced high quality, dense wood suitable for structural uses.

The new deepwater port at Marsden Pt also represented a significant advantage for exports.

The advantage of the Kinleith site was that a lot of infrastructure was already in place and could shave some of the costs of construction.

However, there was no guarantee the mill project would get off the ground as the company had made a commitment not to spend more than $200 million in capital a year, and this limited the company to one major project each year.

"There's no guarantee there will be a mill, but we are looking at it very hard," said Mr Jamieson.

Northland was "a serious contender" if the company did approve the project, he said.

- NZPA