Niagara Sawmilling Launches NZ$115 Million Expansion in New Zealand

Niagara Sawmilling Company Ltd has launched a NZ$115 million (US$67.6 million) expansion of its timber processing operations, marking the largest growth phase in the company’s 91-year history.

The expansion includes a new state-of-the-art sawmill at Niagara’s Kennington site near Invercargill. The facility is currently under construction and is expected to be operational in late 2027. Alongside this, the company has expanded its remanufacturing footprint into the North Island through the acquisition of Ōtorohanga Timber Company, a Waikato-based processor.

The investment supports Niagara’s strategy to grow its remanufacturing business and increase domestic value-added production. Once operational, the new sawmill is expected to more than double output, with log intake rising to over 500,000 tons per year.

The company said the increased capacity will allow more logs to be processed locally into higher-value timber products rather than exported for offshore processing, while also supporting employment growth in the Southland region.

In remarks on the expansion, Managing Director Ross Richardson said:

“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.”