Mooted mill may create 250 jobs

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 (100 potential jobs) and the Marsden Pt Oil Refinery $180 million Future Fuels upgrade (300 jobs).
Carter Holt Harvey 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. The figure excluded the number of workers who would be needed during the construction phase.
"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 Harvey had been active participants 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.
"I hope this will be an exciting development for Whangarei, adding investments to our district, value to logs and employment. We look forward to working with them."
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.
"Any major employment opportunity is definitely good news. The number of unemployed people (in Northland) is going down, but there is always scope for more jobs," she said.
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 wood suitable for structural uses.
The new deepwater port at Marsden Pt also represented a significant advantage.
"It's unclear how much would be domestic and how would be international, but it would give us an export advantage."
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.
"There are a number of other projects, this is one of them."
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."
Northland was "a serious contender" if the company did approve the project, he said.