Niagara Sawmilling Company announces $115m expansion

“This investment is allowing us to further process more logs here in Southland rather than seeing them exported to other countries."

An artist’s impression of the Niagara Kennington site, with the new black shed showing the sawmill extension.

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Niagara Sawmilling Company Ltd has commenced a $115 million expansion of its timber processing operations, marking the most significant growth phase in the company’s 91-year history.

The expansion includes a new state-of-the-art sawmill at Niagara’s Kennington site on the outskirts of Invercargill, which is currently under construction in Canada and scheduled to be operational in late 2027.

Coinciding with this, Niagara has also expanded its remanufacturing operations into the North Island through the recent acquisition of Ōtorohanga Timber Company (OTC), a 94-year-old timber processor based in the Waikato.

Niagara Managing Director Ross Richardson said the expansion presents an exciting opportunity for the business.

“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.”

Over the past decade, Niagara has invested heavily in its operations to establish world-class remanufacturing facilities in Kennington.

Niagara Group Sales Manager Jamie Barton said the growth of the remanufacturing business will further strengthen Niagara’s market position in both New Zealand and Australia.

“Niagara and OTC are two of New Zealand’s most experienced and respected timber remanufacturers, and with OTC’s product mix complementing that of Niagara’s, we are now able to offer an even wider range of quality timber products to both our domestic and export customers.”

Niagara’s investment is not only good news for the company but also a positive news story for the Southland region.

“This investment is allowing us to further process more logs here in Southland rather than seeing them exported to other countries.

“We employ nearly 400 people, and we expect the increased production capacity to support further growth, resulting in secure employment opportunities for our people. Niagara has long-standing roots in Southland and has an ongoing commitment to the region and its workforce,” Ross Richardson said.

Niagara Sawmilling Company Ltd is a family-owned timber processing business operating across New Zealand.

Originally established in the small Southland settlement of Niagara, the company has been 100% owned by Ross Richardson’s family since 1954 and today operates predominantly from its Kennington site on the outskirts of Invercargill.

Niagara produces a wide range of building and finishing timber products using solid and finger-jointed timber, supplying markets across New Zealand, Australia and the United States.

Niagara concentrates solely on plantation-grown radiata pine and has a strong commitment to whole-tree utilisation; everything from the bark on the outside of the tree to the sawdust is processed into a range of value-added products.