Hopes Gisborne sawmill sale will create 60 jobs

Photo / File

A community-owned sawmill near Gisborne has been sold in the hope it will generate more than 60 local jobs.

New Zealand-owned Far East Sawmills purchased the Prime Wood sawmill, just south of Gisborne, with the intention of producing 60,000 metric cubes of timber per annum.

The sawmill earlier shut down in 2010, before being purchased five years later by the Eastland Community Trust, a community fund set up to benefit residents in Gisborne district.

The trust still owns the land the sawmill sits on and has been trying to drive economic activity by creating a hub of forestry companies at the site.

It is hoped the forestry hub and sale of Prime sawmill can help offset the proposed loss of up to 100 jobs at nearby JNL sawmill, Trust chief executive Gavin Murphy says.

"We're thrilled to have such a respected operator on-site (at Prime Sawmill), and that we can go some way to saving local jobs," he said. Last month First Union, representing forestry workers, warned JNL was proposing to mothball its plywood production in Gisborne, resulting in the loss of 97 jobs from its 205-strong workforce.

Union president Robert Reid said the losses would be "devastating", while JNL said the company was refocusing on producing high-quality wood products.

Far East Sawmills managing directory Wade Glass said the company purchased Prime sawmill because it gave it access to a supply of logs and skilled labour.

A further $9 million will be spent on the sawmill to upgrade its ageing equipment as Far East Sawmills looks to export high value lumber to European and US markets, he said.

The company also owns a sawmill in Te Kuiti.