Pan Pac Forest Products Ltd
Encyclopedia
Pan Pac Forest Products Ltd is a Japanese owned forest products company based in Whirinaki
Whirinaki, Hawke's Bay
Whirinaki is a small settlement in the northern Hawke's Bay Region of New Zealand's eastern North Island. It lies close to the junction of State Highways 2 and 5, and is most notable as the location of Pan Pac Mill, one of Hawke's Bay's largest industrial plants.- Whirinaki Power Station :The...

, near Napier, New Zealand
Napier, New Zealand
Napier is a New Zealand city with a seaport, located in Hawke's Bay on the eastern coast of the North Island. The population of Napier is about About 18 kilometres south of Napier is the inland city of Hastings. These two neighboring cities are often called "The Twin Cities" or "The Bay Cities"...

. The company includes forestry operations, manufacturing and sales of TMP wood pulp
Pulp (paper)
Pulp is a lignocellulosic fibrous material prepared by chemically or mechanically separating cellulose fibres from wood, fibre crops or waste paper. Wood pulp is the most common raw material in papermaking.-History:...

 and lumbar products, employing approximately 330 staff.

Company

Pan Pac was established by Carter Consolidated Ltd, a family business which was founded in 1896, a predecessor to Carter Holt Harvey
Carter Holt Harvey
Carter Holt Harvey Limited is an Australasian forest products company, with significant interests in wood products, pulp, paper and packaging. The company employs approximately 10,500 people across Australasia. Carter Holt Harvey's head New Zealand office is located at 173 Captain Springs Road in...

. By 1967, the Auckland based timber company was researching ways to utilise timber waste from its forestry and sawmill operations. They learnt of a strong demand in Japan for mechanical pulp and began to investigate production of mechanical pulp for export to Japan. It became clear that an economic pulp mill would require more wood than the company could provide from waste. This meant that cutting rights to a forest were needed, and a sawmill would be required to process the millable timber.

When 320 million cubic feet of timber from the government owned Kaingaroa Forest
Kaingaroa Forest
Kaingaroa Forest is the largest forest in the North Island of New Zealand, and the largest plantation in the southern hemisphere.The forest covers 2900 km² in the inland East Cape and Bay of Plenty regions, and stretches south past the east coast of Lake Taupo...

 was offered for sale in 1969, Carter Consolidated bid for the lot. They won cutting rights to 220 million, the remaining 100 million going to Tasman Pulp and Paper
Tasman Mill
The Tasman Mill is a pulp and paper mill located just outside the town of Kawerau in New Zealand. Tasman Mill is the largest single in employer in the Eastern Bay of Plenty region. Three separate companies operate within Tasman including Norske Skog, who operate the paper mill, Carter Holt Harvey,...

.

A joint venture agreement was signed between Carter Consolidated Ltd, Oji Paper Company
Oji Paper Company
is a Japanese manufacturer of paper products. It is the 6th-largest paper manufacturing company in the world in terms of revenue.- Operations :Oji Paper produces paper for printing, writing, and packaging...

 and Kokusaku Pulp on 3 May 1971, forming Carter Oji Kokusaku Pan Pacific Ltd.

Ownership

Pan Pac was established as an international joint venture between Carter Consolidated (holding 60%) and two Japanese partners (holding 40%). In 1991 Carter Holt Harvey sold their share in Panpac down to 10% to raise capital for cutting rights to Hawke's Bay forests. In March 1993, Carter Holt Harvey sold the last of their investment and Pan Pac became wholly Japanese owned, with 87% held by Oji Paper Company
Oji Paper Company
is a Japanese manufacturer of paper products. It is the 6th-largest paper manufacturing company in the world in terms of revenue.- Operations :Oji Paper produces paper for printing, writing, and packaging...

 and 13% by Nippon Paper Industries Company Ltd. In 2007, Pan Pac became 100% Oji owned.

Mill

The mill was located in Hawke's Bay because Napier was the closest port to the Kaingaroa Forest, and more specifically Whirinaki was selected as it had a major water supply, the Esk River, and it was conveniently located for both raw materials and product. The mill was built in 18 months for a cost of $12 million and was completed in March 1973. It was officially opened by Prime Minister Norman Kirk
Norman Kirk
Norman Eric Kirk was the 29th Prime Minister of New Zealand from 1972 until his sudden death in 1974. He led the Parliamentary wing of the New Zealand Labour Party from 1965 to 1974. He was the fourth Labour Prime Minister of New Zealand, but the first to be born in New Zealand...

 in June that year. The pulp mill had a capacity of 400 air dried tonnes (ADT) per day.

Stage 2 development was undertaken 1974-1976 at a further cost of $12 million. It included a chip screening system, a new chipper and conveying, four refiners
Defibrator
The defibrator is a thermo mechanical pulping refiner in which the pulp material, such as wood chips, is ground in an environment of steam between a rotating grinding disc and a stationary disc each with radial grooves that provides the grinding surface...

, dewatering machines, another flash drier and slab press, two bale presses and a wrapping system. This lifted production to 600-700 ADT per day.

In the early 1980's, market forces necessitated a change in product, and between 1981-1982 the mill was converted from Mechanical pulp to Thermo mechanical pulp for a budget of $30 million. Five refiners were added, three chip pre-heaters and two chip washes. The initial refiners were converted to 'secondaries'.

A 36MWth Boiler was installed in 2002 and a new chipmill was built in 2009.

Today the pulpmill and sawmill are supported on-site by a chipmill, two boilers and a cogeneration plant.

Production

Pan Pac produces 220 000 tonnes of pulp annually which is exported to Japan. Approximately 200 000 m3 of timber is produced per annum.
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