Kiwi Lumber thrives despite Covid

Blair Watson, Kiwi Lumber Dannevirke site manager and Nigel Baker.

■ In Dannevirke, Kiwi Lumber employs nearly 60 people and contributes $5 million to the local economy in the form of wages and payments to contractors. Forty per cent of Dannevirke's production of 45,000 m3 is exported, with a strong focus on Europe and Australia's high grade markets.

■ In Putaruru Kiwi Lumber employs nearly 100 people and contributes $8 million to the local economy in the form of wages and payments to contractors. ■ Seventy per cent of Putaruru's production of 50,000 m3 is exported, with a strong focus on the USA's clear board market.

■ In Masterton Kiwi Lumber employs 85 people and contributes $8.5 million to the local economy in the form of wages and payments to contractors. Just 2 per cent of Masterton's production of 140,000 m3 is exported as this site caters to the needs of New Zealand's structural market customers.

■ In Gisborne, Kiwi Lumber employs 50 people, and contributes $3.5 million to the local economy in the form of wages and payments to contractors. Thirty five per cent of Gisborne's production of 40,000 m3 is exported, with a strong focus on Europe and USA's Clear Board Markets.

New Zealand-owned Kiwi Lumber, a timber processing company operating in four North Island locations including Dannevirke, where it employs nearly 60 staff, is doing well despite the uncertainties Covid has brought to the trading environment.

Adam Gresham, managing director of Kiwi Lumber Group, says the company is experiencing good growth and reaping the benefits of a significant $60 million capital investment programme across all sites over the past five years.

"Our investment programme has helped us meet the surge in demand over the past few years and from the pandemic from domestic as well as export customers.

"There is huge demand for structural, appearance and outdoor timber. In the US, our customer The Home Depot chain – the largest home improvement retailer in the US – has added 100 new stores to our supply contract in the past few months.

"And in Europe we have seen 100 per cent growth in trade in the past 12 months. Here in New Zealand we are the largest timber supplier to Bunnings and the domestic building supply market has remained strong.

"What these markets have in common is that consumers, many unable to travel internationally and forced to stay at home for weeks and sometimes months on end, are spending to upgrade their homes or to build new homes.

"This is fantastic for our business and means that we are growing. Our outlook is very positive, not only for our revenues, which have grown 65 per cent over the past three years and will continue to grow, but also for job creation, where we expect our workforce to go beyond its current level of 300 employees.

"All told, Kiwi Lumber is making a significant contribution to the local economies of Gisborne, Putaruru, Dannevirke and Masterton, where we operate."

Kiwi Lumber is a growing, progressive sawmilling company marketing Radiata Pine to the USA, Australia, Europe, Asia and New Zealand customers.

Last year, Kiwi Lumber acquired a permanent operation in Matawhero, Gisborne, its fourth sawmill. The company is experienced in running very successful timber processing businesses, taking on troubled sites, turning them around and growing them.

In total, Kiwi Lumber processes 450,000 tonnes of logs every year (equivalent to 65 truck and trailer loads each day) to manufacture appearance, decking, structural and outdoor timber products.

The company offers a range of employment, including apprenticeships across all sites, and is recruiting motivated people with work-ready attitudes to join its growing team.