Niagara Sawmilling Company Ltd has commenced a $115 million expansion of its timber processing operations, the largest growth phase in the company's 91-year history. The expansion includes a new sawmill at the Kennington site near Invercargill, currently under construction in Canada and scheduled for operation in late 2027, alongside the acquisition of Ōtorohanga Timber Company, a 94-year-old processor in the Waikato.
Once the new sawmill becomes operational, Niagara will more than double its current output, increasing log intake to over 500,000 tonnes per year. Managing Director Ross Richardson stated that the investment supports the company's long-term strategy of growing its remanufacturing business, allowing more logs to be processed locally in Southland rather than exported overseas. The company currently employs nearly 400 people, with increased production capacity expected to support further job growth.
Group Sales Manager Jamie Barton noted that Niagara and OTC are two of New Zealand's most experienced timber remanufacturers, and the combined product mix will offer a wider range of quality timber products to domestic and export customers in New Zealand and Australia. Over the past decade, Niagara has invested heavily in establishing world-class remanufacturing facilities at its Kennington site.
