Niagara Sawmilling Announces $115m Expansion at Kennington Site
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Invercargill timber processor Niagara Sawmilling Company has launched a $115 million expansion that will more than double its production capacity and create new jobs for the region.
The expansion includes construction of a new sawmill at the company's Kennington site, currently being built in Canada and due to arrive in late 2027. The company has also expanded into the North Island through its recent purchase of Waikato-based Otorohanga Timber Company.
Managing Director Ross Richardson said the investment represents the biggest growth phase in Niagara's 91-year history. "These investments support Niagara's long-term strategy of growing and strengthening our remanufacturing business. Once the new sawmill is operational, Niagara will be able to more than double its current output, increasing log intake to over 500,000 tonnes per annum."
"This will enable us to remanufacture more premium timber products in Southland and add value to logs locally, rather than seeing them exported and processed overseas," Richardson said.
The family-owned company, which has been operated by the Richardson family since 1954, currently employs nearly 400 people. Richardson expects the increased production capacity to support further job growth in the region.
"This investment is allowing us to further process more logs here in Southland rather than seeing them exported to other countries," he said. "We expect the increased production capacity to support further growth, resulting in secure employment opportunities for our people. Niagara has long-standing roots in Southland and has an ongoing commitment to the region and its workforce."
Group Sales Manager Jamie Barton said the expansion strengthens Niagara's position in both New Zealand and Australian markets. "Niagara and OTC are two of New Zealand's most experienced and respected timber remanufacturers, and with OTC's product mix complementing that of Niagara's, we are now able to offer an even wider range of quality timber products to both our domestic and export customers."
The company has invested heavily over the past decade to establish what it calls world-class remanufacturing facilities in Kennington, building a reputation as New Zealand's leading timber remanufacturer. Niagara processes plantation-grown radiata pine into building and finishing timber products for markets across New Zealand, Australia and the United States.