Fletcher Building has confirmed its state-of-the-art new plasterboard facility Winstone Wallboards will be relocating from Auckland to Tauranga.
The new plant is a $400 million investment that will be based at the Tauriko industrial park.
Winstone Wallboards is New Zealand's only local manufacturer of plasterboard.
Fletcher Building chief executive Ross Taylor said the company was firmly committed to local manufacturing and delivering the highest quality product for New Zealand homes.
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"This larger, more efficient facility will help to futureproof plasterboard manufacturing in New Zealand.
"Our current site in Onehunga, Central Auckland is land locked, which has prevented us from expanding our operations and improving efficiencies by consolidating manufacturing and distribution on the same site.
"The site located in the Tauriko industrial park is more than double the size of the current facility and will allow for even further capacity growth in the future," he said.
Taylor said the location was ideal for North Island distribution, as well as being near the Port of Tauranga for delivery of raw materials used to manufacture plasterboard.
The new facility will bring significant economic benefit to the region and will create around 100 new permanent jobs in Tauranga and, at peak construction, there will be around 300 people working on site.
Winstone Wallboards is working with its Auckland employees through the plant build and transition and will offer transfer opportunities. Winstone Wallboard's Wellington and Christchurch operations will remain unchanged.