7 November 2014

The sale of the former Southern Cross Forest Products' assets in Milton, South Otago, to Pan Pac Forest Products has been welcomed by locals.

The Overseas Investment Office approved the sale earlier this week. Pan Pac lumber general manager Michael Reaburn told the Otago Daily Times ''several million dollars'' would be spent upgrading the sites before full production commenced in April next year.

Clutha Mayor Bryan Cadogan said the investment was ''exciting stuff'' for the town of about 2000 people and the wider district. Pan Pac would employ 31 staff at the two Milton sites with recruitment beginning progressively from December, Mr Reaburn said.

The announcement would provide some consolation for the more than 50 workers employed at the two sites when Southern Cross was placed into receivership in March.

The settlement and ownership change of the sawmilling and drying assets would be completed by November 18.

The sites are Pan Pac's first operation outside of Hawkes Bay, where the company has operated for more than 40 years. Mr Reaburn said the sites would be amalgamated into one and more jobs could be on the cards following further expansion. Work on upgrading the sites had begun and engineers would visit the Milburn sawmill next week.

Source: Otago Daily Times. To read the full story >>