The Provincial Growth Fund (PGF) will provide a loan of up to $1.8 million to TaranakiPine to allow the company to diversify and create new jobs, Regional Economic Development Minister Shane Jones announced on Thursday.

TaranakiPine is in the early stages of producing factory finished engineered timber panels, which can be used in the construction of floors and roofs in buildings.

"With support from the PGF, the company will now be able to accelerate the project from pilot stages to full commercialisation.

"This will generate seven new jobs directly and 13 new jobs indirectly and is an exciting investment that supports a locally-based business to fast-track new product to market, which will in turn help to unlock new economic opportunities in Taranaki.

Advertisement

"This diversification will also support the retention of the existing 170 jobs at the mill.

"This demonstrates the value of the PGF and the ability we have to partner with the private sector to bring forward projects which will make a real difference for our regions.

"Importantly, this investment also aligns strongly with the Government's priorities, including KiwiBuild and the One Billion Trees programme. Finished timber panels will help to increase productivity in housing construction.

"The commercialisation of the project highlights the potential for the wood processing sector to transition from a focus on volume to value and the production of high-value products.

"For years people have talked about adding value to the industry by increasing our on-shore processing and manufacturing capability and now, through the PGF, we're able to do exactly that," Shane Jones said.