New Zealand’s Regional Economic Development Minster Shane Jones has announced that the Four Bay of Plenty timber businesses will be receiving investments totaling nearly $ 22 million through the Provincial Growth Fund. Jones hopes that this infusion will boost the local economy and create jobs. Jones noted that “A number of sawmills have closed or gone into receivership. We are not only helping these businesses secure workers’ jobs; they will also be able to take on more employees. We need to boost the industries already supporting their communities to ensure the regions are able to weather this economic storm.” One of the recipients will be the Rotorua-based sawmill Red Stag Wood Solutions, which will be receiving a $15 million loan to develop an engineered wood products manufacturing facility. Jones went onto say that, “Red Stag is a major employer in the region and a well-respected member of the industry. This funding will enable the company to bring forward by two to three years construction of the facility which will focus on the production of cross-laminated timber.” Its products will be used in the construction of 2000 new houses, which will be invaluable for Government housing initiatives.
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Financial support for timber industry