Whakatāne Mill will expand the size of its current operations, less than a year after it looked set to close and leave hundreds of employees without work.

The mill is expecting to significantly increase production of paperboard by approximately 40 per cent, or the equivalent of 60,000 tonnes a year. The current production output of the Mill sits at about 150,000 tonnes a year.

The previous threat of closure came from former owner, Swiss company SIG Combibloc, given its struggle to remain competitive.

It was purchased by current owner Power Paperboard Limited, in May last year, averting the loss of more than 170 jobs.

Within three months of the purchase by PPL, the Mill had stimulated substantial amounts of interest from domestic and international customers, with order books full well into 2022.

The expansion will begin in July, 2023. Expansion costs will be funded jointly by Whakatāne Mill Limited's internally generated cash and a loan from the Bank of New Zealand.

Executive chairman of WML Ian Halliday says the expansion will provide a huge boost for the local economy, and is also good news for the region.

'The Mill is already a significant employer and contributor to the Whakatāne and the Bay of Plenty region, and during the construction phase is set to employ more than 300 people,” says Ian.

'The raw materials needed to ramp up production will be almost exclusively sourced from local timber and pulp mills, with the value-added product and increased tonnage expected to boost export revenues for the country.”

Specialised equipment needed for the expansion will be imported from Europe, however ancillary equipment including motors and piping will also be sourced and manufactured locally for the most part, as will construction.

'In addition, we will be introducing measures for increased sustainability, so we can continue to build an even more environmentally aware business. This is a big focus area for us as we head to a more sustainable platform for future-proofed growth,” says Ian.

As part of the upgrade, WML will remove plastic wrapping for its finished products and replace it with paper wrapping, a change that is expected to reduce the country's plastic use by 160 tonnes.

It will also reduce its gas consumption by eliminating its gas-fired infra-red dryers and adopting new drying methods.

The aim is eventually to generate steam from wood burning rather than gas, further reducing emissions in line with Government priorities, moving the Mill closer to becoming a carbon-neutral manufacturer.