Upgrade to lead to more work for firm

Pan Pac has announced a $70 million investment to upgrade the capability of its Whirinaki pulp mill north of Napier.

The announcement was made today by Kazuhisa Shinoda, President and CEO of Oji Paper Company, Pan Pac's parent company in Japan.

Pan Pac managing director Doug Ducker said the upgrade at Whirinaki meant new markets would open for the plant's pulp, used for newsprint since 1973.

"The new product will enable its use in higher-quality carton board - perfume boxes and the like," he said.

It would be marketed throughout Asia. He said Pan Pac was lucky compared with other New Zealand pulp producers who continued to supply a basic pulp to increasingly sophisticated overseas mills.

"The very positive element is the commitment of Japanese shareholders to value-added processing which secures local jobs."

The announcement of the upgrade follows consent to discharge effluent granted by the Hawke's Bay Regional Council.

The Environmental Impact Assessments indicated the development would further reduce the already low impact of Pan Pac's operations on Hawke Bay.

The project will see a staged conversion to the new process, incorporating investment in a two-stage alkaline peroxide bleaching facility.

A new effluent plant will incorporate two stages of biological treatment to remove dissolved material and additional settling treatment to remove fine suspended solids.

Construction of the new facility had already started and is expected to be operational by April 2012.

Pan Pac employs 370 throughout its lumber and pulp divisions and more than 470 are employed by independent contractors in the forestry division.

The company balloted 180 tickets among its employees to the Rugby World Cup game in Napier yesterday, supporting Japan against Canada.