15th October
Press Release
Benefits of Investing In Kawerau Confirmed
An analysis undertaken by the Crown Research Institute SCION to compare investment returns from wood processing based in
Kawerau with those from other parts of New Zealand show Kawerau offers significant benefits in comparison to other wood
processing centres.
These benefits are gained by locational, logistics and resource synergies and are measured by improved financial
performance of businesses, better regional/national GDP impacts, employment resourcing opportunities and more effective
use of co-located resources such as geothermal energy.
“The results of this study give us objective data to back up what we have known for a long time – that Kawerau has the
potential to significantly increase its contribution to NZ Inc” said Su Cammell, Project Manager, ISKawerau. “We look
forward to being a part of a development programme that will provide big gains for both Kawerau and the wider region.”
From this analysis, locating wood processing in Kawerau has advantages on a Return on Capital Employed (ROCE) basis
across a range of wood processing technologies. The size of this advantage varied with the type of process and the
significance of process heat demand to its operation.
It was estimated that new wood processing operations (based on a exemplar cluster of sawn lumber, engineered wood
products and biofuels on a scale that fitted within the anticipated wood supply) could provide over 344 permanent direct
jobs and a further 670 indirect jobs.
Mayor Malcolm Campbell acknowledged that increased employment would have a big impact on the social issues of the
township. “We know jobs work” Mayor Campbell said “Our residents want to see their children stay in the area but at
the same time have the opportunity to be engaged in productive work.”
The exemplar cluster of new operations would also add a further $282m to the region’s GDP which is approximately a 25%
increase on the Eastern BOP 2013 levels.
Seeds of the study were planted back in 2010 when NZTE funded a project to develop a case for attracting Foreign Direct
Investment (FDI) into renewable energy projects and energy intensive businesses in the Kawerau region via an industrial
development model. Industrial Symbiosis Kawerau leverages the region’s existing natural assets and industrial base to
foster sustainable economic growth for Kawerau. NZTE remains supportive of the project and will follow any commercial
developments closely.
A complete copy of the study and further information on Industrial Symbiosis Kawerau can be found on http://embracechange.co.nz/media/downloadable-pdfs
ENDS