An American investment of $12 million may have fallen through, but Ray Mountford says his proposed rosin plant is still happening - it may just take a bit longer than anticipated.
In July, Mr Mountford went public with the project he had spent the past eight years researching, signing aletter of intent between his company, Pacific Pine Derivatives, and American Pine and Rosin Derivatives to build a processing plant in Kaingaroa to convert waste forestry material into turpentine and rosin - an ingredient in inks, papers, varnishes, adhesives, soap, soda, soldering fluxes and sealing wax.
"Unfortunately, the deal with that group of investors did not happen. You never know the exact reasons why these things happen.
"People told me it was too good to be true to get up and started within three or four months of completing the research, and it was."
The project is expected to create up to 200 jobs and Mr Mountford now has a new letter of intent with a group of New Zealand investors for the same amount and said there had also been interest from Europe as investors there looked beyond their own economically troubled region for opportunities.
He also has several high profile people from Europe interested in coming on board with Pacific Pine Derivatives and he said their backgrounds and skills would complement his own research and forestry background.
Meanwhile, work has continued to find a suitable site for the plant. Kaingaroa is still an option, but Mr Mountford said he was also looking in Tokoroa, Kawerau and Putaruru.
"We are now looking at something that is quite a lot bigger than planned."
Negotiations are progressing to bring a second process into the project, using the wood waste not suitable for conversion to turpentine and rosin. He said it would add even more value to the raw materials coming into the plant.
"It is going to happen, it's just a matter of when."
