The new super mill at Red Stag is one many several new developments around Rotorua Photo/Stephen Parker
The new super mill at Red Stag is one many several new developments around Rotorua Photo/Stephen Parker
The 5 major projects leading the way
Work on Rotorua's new "super mill", the redevelopment of the old Tachikawa sawmill, a new childcare centre and several other major building projects have led to more than $35 million worth of commercial building consents being issued in the first five months of this year.
While the number of consents issued is slightly down, the value is almost triple what it was the previous year.
From January 1 to May 31 this year, the Rotorua Lakes Council issued 97 consents worth $35.1 million. The majority were for work such as renovations, averaging about $10,000 each, but six big consents made up $25 million of the total value.
Red Stag is spending just over $19 million on the construction of its new "super mill".
Chief executive Marty Verry said work on the plant, which was expected to cost $60 million all up, was progressing well.
The state-of-the-art mill will be the largest in the Southern Hemisphere and have an annual log input capacity of 1.2 million and be run on two shifts.
"It's progressing really well and on track to hopefully be up and running midway through next year."
Photos/Stephen Parker
About 30 to 40 people were involved onsite with construction at the moment, with that number expected to jump to 100 at the peak, he said.
Mr Verry said generally it was local contractors who were employed.
"For them, it's a good boost. Most of that flows back into the economy."
He said it was "awesome" to have the project under way.
Another new log processing facility is planned for the former Tachikawa site on Vaughan Rd.
Lumbercube Ltd has been granted consent for $1.3 million worth of internal alterations.
One of Lumbercube's directors is Rotorua's Paul Pedersen, managing director of Pedersen Group, which operates log processing facilities locally and overseas. He did not want to comment about the Rotorua development at this stage.
Lumbercube purchased the site from receivers after Tachikawa Forest Products Ltd was put into receivership in October 2013 with the loss of 130 jobs.
Local developer Ray Cook of R&B Consultants said the new childcare facility on Maisey Pl was for Kidz World Rotorua. It is being relocated from its nearby site to allow room for the new Countdown Rotorua North, which is currently under construction.
Mr Cook said construction started in February and was expected to be completed at the end of next month.
Rotorua Chamber of Commerce chief executive Darrin Walsh said it was great to see commercial developments happening around town.
"For me, it is as much about the number of developments as the value in dollar terms. It is the activity that is important because that drives confidence and engages other contractors."
He said more local developments and more local contractors equalled more money in the local economy.
"It is great to see investment in our two big sawmills - the regional growth survey highlighted forestry as one of potential growth markets especially processing of the logs on our shores."
