Having lost more than 1000 jobs in the wood processing industry since 2008, The National Distribution Union is sighing with relief, with the announcement of a proposal to build a new forest waste processing facility near Rotorua.

US firm Pine and Rosin Derivatives has signed an agreement to invest $12 million into the new facility, that will process forest waste into turpentine and resin.

National Distribution Union Secretary, Rawiri Daniels, says the new plant is expected to  create between 150 and 200 jobs.

"The industry has been severely hit with layoffs and high log prices as well as the high nz$. But if things are going to turn around now is the time to do it.

"We’ve got a lot of people with the skills and qualifications from the industry that could certainly deal with looking at other options and opportunities. It’s anticipated that there will be as many as 170 jobs that would be directly employed in the processing business.

"However outside of that there is every likelihood that it will also create between 80 to 100 jobs externally from the business and that will be good for the local community and the economy.”

Rotorua-based Company, Pacific Pine Derivatives, will now move ahead with developing the plant at Kaingaroa.

“We understand that the planning consent process is underway and they anticipate building at the site within the next 3 months.

"After that it’s a gradual process that will take between 9 and 12 months, before they start to operate. It’s going to be downstream, however it will certainly be good for the local economy.”