Taupo hosts Fenglin Group and MOFCOM delegation from China

This week, Enterprise Great Lake Taupo, Taupo District Council and NZ Trade and Enterprise hosted a number of Fenglin Group Senior Managers and an inter-agency delegation led by MOFCOM (Ministry of Commerce, People’ Republic of China).

Enterprise Great Lake Taupo has, for the past two years, been working with various entities to attract a commercial stakeholder to undertake an in-depth feasibility study to construct, own and operate a new world class sawmill, LVL (laminated veneer lumber) and MDF (medium density fibreboard) plant in Taupo, New Zealand. With support from NZ Trade & Enterprise, the Fenglin Group is currently undertaking this feasibility study, due to be completed by early 2016.

Fenglin Group Chairman, Mr Cui, said that his visit to Taupo was an essential part of the feasibility study process.

“We see this project as a true win-win deal for both New Zealand and China,” said Mr Cui. “New Zealand wins as we would process these logs onshore here rather than in China. This would add more value to the product before it is shipped, generating more money into the local economy and creating jobs. China wins as we will have a higher quality product as radiata pine is far superior to the eucalyptus that we currently process.”

“The environment also wins. This plant would process the raw materials in a sensible and sustainable way. By having multiple processes together at one site, we maximise the raw material, achieving optimal utilisation of the valuable radiata pine.”

“The support of the Taupo community, and the local and central government will be essential to our success,” said Mr Cui.

“Fenglin aspires to be an industry leader in quality, environmental and safety standards,” said Mr Cui. “If we proceed, this project will present a number of new challenges for us. However we have the competence and confidence to succeed. We will not let the people of New Zealand down.”

Enterprise Great Lake Taupo General Manager, Fritz Frohlke, said that this project will be hugely beneficial to the Taupo economy if it proceeds.

“The estimates are around 250 jobs and a US$250m investment to build the plant using world class state of the art technology,” explains Fritz. “What is really exciting is the opportunity to add value to these logs before they go offshore, generating real economic benefit for our district. And of course, using geothermal clean energy will set a new benchmark for this industry and will put Taupo and New Zealand on the global geothermal energy innovation map.”

Taupo is located on one of the world’s largest geothermal fields which are used to provide low cost thermal and electric energy. The area is considered the ‘wood basket’ of New Zealand being surrounded by 250,000ha of the world’s largest stand of renewable and sustainable certified FSC radiata pine forests. Taupo has a long history in the value added wood processing sector.

Mayor David Trewavas said the project would leverage the district’s strengths in terms of access to wood, geothermal energy production and its central location.

“About half the logs that leave New Zealand have not had any value added and most of those go to China,” said Mr Trewavas.

“This is potentially a multi-million dollar investment that will not only create employment opportunities but further strengthen ties with one of our country’s largest trading partners.”

The Wood Council of New Zealand’s Strategic Action Plan is to increase the volume of wood processed to add value to New Zealand’s forest product exports, with their goal to double annual export earnings by 2022 to $12b.

ENDS

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