Milburn sawmill and Millstream's drymill assets will be sold to Pan Pac Forest Products if the sale gains the approval of the Overseas Investment Office, receiver Brendon Gibson, of KordaMentha, says.
Clutha Mayor Bryan Cadogan said it was ''fantastic news''.
About 100 Otago-based staff, 26 at Millstream and 1 at Milburn, from Southern Cross were laid off progressively from mid-June after receivers KordaMentha failed to sell Southern Cross' four Otago sites as a going concern.
Pan Pac Forest Products lumber general manager Michael Reaburn said the company was seeking to expand its operations to cater for the demand from its export markets.
''We see it as an opportunity for the future,'' he said.
The company operated in Hawkes Bay at present and the Otago sites provided a unique opportunity for expansion, Mr Reaburn said.
When asked if the staff who lost their jobs at the Milton sites would be offered positions, Mr Reaburn said: ''We will be seeking the right people for the operation and some of the [former] staff have industry knowledge and experience of operations of the sites.
''We will be advertising for the roles and selecting the best people for the jobs.''
The company was ''looking forward to working in with the local community and being involved in the Otago region'', he said.
The sale had to gain the approval of the Overseas Investment Office because Pan Pac Forest Products was owned by Japanese corporation Oji Holdings Corporation.
It was not known when the decision would be made.
Mr Cadogan said the possibility of Japanese owners for the sites was unimportant considering the jobs which would be created.
''I'm ecstatic,'' he said.
''It's really positive news for the district and I'm thrilled for the town of Milton.''
Mr Gibson said KordaMentha was starting the sale process for Southern Cross' other assets in Otago.
