KIWI FORESTRY PLAN LAUNCHED

NZ FORESTRY AND WOOD PROCESSING INDUSTRY TRANSFORMATION PLAN WILL
INCREASE WOOD PROCESSING AND GROW A LOW-CARBON, HIGH-VALUE INDUSTRY

THE New Zealand Forestry and Wood Processing Industry Transformation Plan (ITP) will increase wood processing and grow a low-carbon, high-value industry, Forestry Minister Stuart Nash announced last week.

“Through working closely with industry we’ve developed an ITP that will both boost the value and future-proof our forestry sector, providing greater economic security all New Zealanders during this global downturn. The forestry and wood processing sector is a multi-billion-dollar sector in New Zealand, with an export value that has grown by 22% since 2017, and is now worth around NZ$6.6 billion, and employs more than 35,000 people in regional communities.

“The ITP will see our export numbers rise further, while creating new domestic opportunities for the sector. An initial investment of NZ$2.5 million from the Government, plus another NZ$1 million from industry contributions, will see a series of initiatives rolled out from 2023 onwards,” Minister Nash said.

The ITP sets the path for future export growth that does not just rely on exporting logs and instead opens up domestic opportunities such as converting wood into high-tech low-carbon products such as construction materials, including timber frames, fence paling and decking, and into bio-materials such as liquid and solid fuels. These will all create more employment and lift sustainability.

The Government allocated NZ$27 million in the 2022 Budget 22 to support delivery of the ITP.

“We will also develop our domestic woody biomass industry that takes forestry by-products such as branches, bark, chips and sawdust and turns them into products such as pellets and particleboard, and into bio-fuels to power our transport, make plastics and pharmaceuticals, and replace high-emissions materials in our buildings.”

“More processing in New Zealand will create jobs, drive growth and provide more wood residues to support the growing bio-economy,” Minister Nash concluded.