Study into Northland wood processing facility concluded

Media contact: MPI media team
Telephone: 029 894 0328

[This media release has been issued jointly by MPI, NZTE and Northland Inc]

The results of a study investigating a new wood processing facility at Ngawha, Northland have been released today by Northland Inc, New Zealand Trade and Enterprise and the Ministry for Primary Industries.

The agencies have confirmed that as a result of the findings, and after consultation with a number of key stakeholders, no further feasibility studies would be carried out on this project at this time.

The study looked at local impact, forest resource availability and market demand for an integrated sawmill and mechanical pulp mill at Ngawha.

Dr David Wilson, CEO of Northland Inc, said that while the study provided some valuable insights into the industry, the decision to not proceed further at this time is the correct one.

“The study, carried out by independent consultants Indufor, provided analysis relating to Northland’s forestry resource and wood processing environment. It concluded that there would be sufficient low grade wood fibre available to resource a mechanical pulp mill, that there was sufficient global demand for mechanical pulp and that this could complement the current wood processing sector in Northland,” said Dr Wilson.

“While the study does identify potential, we have decided not to continue with further investigations at this stage. This is in part due to uncertainties arising from the Electricity Authority’s Transmission Pricing Methodology review and because of concerns raised by industry that need to be addressed.”

Forestry and wood processing were identified as key industries with growth potential in the Tai Tokerau Northland Growth Study in 2015. The Ngawha investigation became one of the key projects in the Action Plan.

The full report which includes details around the constraints and uncertainties can be found below.

Read the Full report [PDF, 2.3 MB]

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