Additional investment will have to be funneled back into New Zealand sawmills in order to bring the Wellington Company's joint venture deal in action, over the pine timber in China.

This week, a memorandum of understanding had been signed with Chinese manufacturer Tianjin Sunwin Group, which asked for constructing a factory for processing softwood logs for trade in the building industries of European and Chinese. It was signed by Forest industry Company, Forme Consulting Group.

Gross annual revenue of 100 million is expected from the factory by Forme co-owner Jon Dey, who has set a target to process 50,000 cubic meters a year from about 100,000 cubic meters of clipped logs. He added that in order to upgrade sawmills or to construct another sawmill in New Zealand, their project will require "significant investment".

"It will have backward benefits into New Zealand in terms of new investment or expanding current wood processing capacity. It's a win-win in that sense", he said.

Some exterior elements like window frames, cladding and decking will be turned out by a 190 million Chinese Yuan plant, which is close to a port city of Tianjin, close to Beijing. This industry is expected to begin operating by late
2012.