One of New Zealand’s largest sawmills is weeks away from a full-scale reopening after the Millari Australia Group—better known as the distributor of True Blue Timber—announced that it will start full production from the site of the former JUKEN Gisborne mill on April 28, 2025.
That is according to Ryan Yari, the CEO of the Millari Group, who revealed that the new owners have retained the mill’s managers and supervisors: “This marks a significant step forward in securing high-quality, locally sourced LVL and timber for the Australian market.”
Mr Yari—who in February outlined plans to supply more than 200,000 cubic metres of AS/NZS LVL, plywood, and pine products to Australia’s east coast—said that recent log testing means the mill is well positioned to meet the demand for premium products.
“We’ve completed batch testing of our initial production, and we’re ready to supply in volume Milari NZ branded LVL and radiata pine in grades LVL, E10, E13, E14, Formwork LVL (as well as) Radiata Pine F5, F10, M10 and ancillary products.”
Ryan Yari, the CEO of the Millari Group, on the new mill in Gisborne, New Zealand.
The milestone comes after Wood Central reported that the mill—Milari’s first acquisition outside Australia—is part of a broader strategy to capture Australasian demand for engineered wood products. As a result, Milari will increase the mill’s current capacity from 130,000 cubic metres per year (including 60,000 cubic metres for timber, 55,000 cubic metres for LVL and 15,000 cubic metres of plywood) to more than 200,000 cubic metres – with extensive upgrades to LVL and plywood lines over the next two years leading to a maximum capacity of 100,000 cubic metres for timber, 80,000 cubic metres of LVL and 20,000 cubic metres for plywood.
“Our Millari NZ facility in Gisborne will be on track to increase the output capacity of LVL, Plywood and timber production over the next few years as we invest in new machinery and technology for the 35,000 square metre factory,” according to Mr Yari, CEO, who said that True Blue Timber experienced a 148% growth in engineered wood products last year.
“With these exciting facilities alongside our True Blue Timber operations, we will continue to offer the Australian industry a reputable and reliable ongoing source of high-quality EWP (engineered wood products) and timber products and deliver them directly with quick turnarounds.”
As it stands, New Zealand is one of Australia’s top markets for sawn wood timber, with more than 21% of imports coming across the Tasman, behind China (55%) but ahead of Germany (14%), Lithuania (12%) and the United States (10%). And of the $6.87 billion worth of imported forest and wood products (in 2022-23), plywood and engineered wood products have been growing steadily, with the FAO expecting demand for veneer and plywood to double over the next 25 years.
Where do Australia’s engineered wood products come from?
Last year, Wood Central reported that the risk of non-conforming building products entering Australia is increasing like a rising tide, fuelled by shipments of laminated veneer lumber entering ports from Europe, Russia and faraway China. In 2022, the publisher of Wood Central exclusively revealed that record shipments of Russian LVL were entering Australian ports via China following Putin’s invasion of Ukraine. Originally developed in Australia during the 1970s, LVL is primarily used for structural applications and is comparable in strength to solid timber, concrete, and steel.
Until early 2022, Australian importers relied on Russia for 40% to 50% of all LVL, formwork, and beams entering the Australian building and construction supply chains. However, that all changed in mid-2022 when the European Union banned Russian and Belarusian timber exports, and PEFC and FSC suspended certification schemes in both countries, with Australia opting to slap a 35% tariff on all Russian imports.
