08 October 2004
Coastpine to expand Reefton mill
The West Coast Development Trust has announced its third largest business loan for 2004 – a distribution of up to
$720,000 to Reefton sawmilling firm, Coastpine.
The loan will be used to purchase and install a second kiln and dry shed, and provide working capital to cover the
increase in stocks required.
Coastpine currently employs 24 staff and the expansion will result in six more full-time jobs in Reefton.
“We currently have excess cutting capacity within the mill”, says Coastpine manager, Stephen Hunt.
“At the moment our single kiln runs 24 hours and we’re producing more sawn timber than we can dry. The second kiln will
increase our efficiencies and our ability to add value to our output.”
In 2003, Coastpine received an initial Development Trust loan of $120,000 which was used for working capital. The Trust
then engaged an independent expert adviser to assess the larger second application. A condition of the second loan is
the advisor, who has an extensive background in forestry and timber processing, is appointed an independent director to
Coastpine’s board.
“Timber processing is a major industry on the Coast, and the Trust investment will ensure a major employer in Reefton
has a sustainable future,” says Development Trust chief executive, Mike Trousselot.
“This project satisfied all of the key Development Trust requirements – delivering sustainable employment, sustainable
economic benefits and strong potential for achieving self sufficiency.”
“Coastpine’s expansion is not expected to detrimentally impact on other Coast mills – if anything, it will assist in
strengthening the local industry” says Mike Trousselot.
ENDS