20 | Red Stag T T Russell Fredric Timber boosting Rotorua’s economy Red Stag produces about 700,000 cubic metres of timber annually. REGIONAL DEVELOPMENT Red Stag’s Rotorua workforce is helping drive a timber business that has quadrupled output while doubling staff numbers during 23 years of reinvestment. Red Stag produces about 700,000 cubic metres of timber annually, with more than 400 staff and contractors working at its Rotorua sawmill site, which is recognised as the largest structural timber and single-site sawmill in the Southern hemisphere. Across the wider group, the company employs about 480 people, including about 40 in Auckland. Chief executive, Marty Verry, says the scale of the workforce makes the business the largest private employer in the region, while its expansion has brought more economic activity into Rotorua. Its growth has been driven by more than $350 million invested in plant, equipment, buildings and site capacity. The mill is now processing more than 1,200,000 tonnes of logs as part of its development towards what Marty describes as a “super mill”. “I think what we’ve done is brought GDP and economic growth to the region that would otherwise have been elsewhere or in Australia,” he says. Investment in technology has changed the skills required to run the site, with existing employees developing their capabilities alongside people recruited for specialist roles. “You can’t do that without staff upskilling and being highly skilled either through improving the skill set of the existing staff, but also bringing in people with the skill sets we’ve needed to run that sort of scale of technology.” The location is another part of the equation, with Rotorua benefiting from a strong “log basket” and a supply chain supported by professional-scale institutional forest owners. Red Stags’ key relationships include suppliers, customers, council and local iwi. Its workforce includes about 50% Māori and 10% Pasifika employees. Marty estimates there are about 200 to 250 Māori staff, with iwi relationships extending into forestry interests, timber, apprenticeships, employment opportunities and environmental monitoring. “It’s a real cultural melting pot of people all pulling in the same direction.” The company’s investment focus includes staff retention, with employees having careers spanning decades; 40- and 50-year careers are not uncommon, and the opportunity to work in a growing business and develop skills is part of its appeal. Nulook Gateway DESIGNED FOR KIWI HOMES. Glass, Windows & Doors Hardware & Spare Parts Retrofit Double Glazing & Insert Windows Joinery Maintenance Full Replacement Aluminium Joinery Request a Free Quote Today Phone: 07 345 7816 Email: nulook.rotorua@gatewayglass.co.nz “People can see that growth, they see the investment, they know that we’re growing and they’re going to have a job there for a long time if they do a great job,” Marty says. Red Stag’s development has moved beyond conventional sawmilling, with the business launching New Zealand’s only CLT (cross laminated timber) factory five years ago and developing large-format engineered wood products through Red Stag TimberLab. A new volumetric modular production line – VoMo – has now opened for off-site construction, developed with joint venture partner, NZ Strong, and aimed at producing a range of building types and factories for delivery to sites. The site’s energy system adds another dimension, with wood residues burned to create steam for timber drying and electricity generation, supplying the facilities and exporting power to the grid. The next stage for the sawmill is further expansion. Red Stag has a clear path to 800,000 cubic metres and a longer-term target of one million, which Marty describes as a “North Star target”. Alongside industrial investment, the group is directing about $1.5 million to charities and programmes around the region and country annually, including a school-based programme supporting sports and recreational activities intended to help students stay engaged with education.
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