Pan Pac Forest Products is gaining a South Island footprint, receiving Overseas Investment Office approval to buy a sawmill and a timber-drying facility in Otago.
On November 18, the Japan-owned Whirinaki-based company is due to buy the assets from the receiver of Southern Cross Forest Products, which operated several mills.
A subsidiary company, Pan Pac Forest Products (Otago) Ltd, has been formed to operate and manage the assets on two different sites, 7km apart. It will hire staff from next month and will initially employ 31 people.
Pan Pac lumber general manager Michael Reaburn said millions would be spent upgrading the plants before production recommenced in April. In about two years' time, the plants would be combined on to one site. "Obviously, we will continue to grow and develop the site here in Whirinaki but there is also a large resource in the Otago/Southland region," he said.
All sales would be managed from Whirinaki.