The forestry sector has been given a $58 million injection with Rotorua to reap the benefits.

Forestry Minister Shane Jones made the pre-Budget announcement yesterday and said the extra funding would create about 80 jobs at a new Rotorua premises.

A new Forestry New Zealand premises will be built in Rotorua, a town Jones coined "the heart of the forestry sector".

The premises will create 80 jobs nationwide with a substantial amount here in Rotorua.

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Jones said the premises would create a host of well-paying jobs for men and women, and assured the building "would be made completely of wood".

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