A forestry boom worth millions of dollars lies ahead for Milton.
The Overseas Investment Office approved the sale of Milton's former Southern Cross Forest Products' assets to Pan Pac Forest Products earlier this week.
Pan Pac lumber general manager Michael Reaburn told the Otago Daily Times ''several million dollars'' would be spent upgrading the sites before full production commenced in April next year.
''The majority of the work and capital expenditure will be local,'' he said.
Pan Pac had discussions with several local companies about the work and had spoken to local stakeholders, including the Clutha District Council and forestry owners, suppliers and service companies.
Clutha Mayor Bryan Cadogan said the investment was ''exciting stuff'' for the town of about 2000 people and the wider district.
Pan Pac would employ 31 staff at the two Milton sites with recruitment beginning progressively from December, Mr Reaburn said.
The announcement would provide some consolation for the more than 50 workers employed at the two sites when Southern Cross was placed into receivership in March.
Mr Reaburn said some former employees had contacted Pan Pac during the past few months and they would be considered for roles at the sites.
''If former employees apply for roles, obviously they will be looked at in terms of their experience and knowledge, and they have some advantage [having worked at the sites previously],'' he said.
The settlement and ownership change of the sawmilling and drying assets would be completed by November 18.
The sites are Pan Pac's first operation outside of Hawkes Bay, where the company has operated for more than 40 years.
Mr Reaburn said the sites would be amalgamated into one and more jobs could be on the cards following further expansion.
Work on upgrading the sites had begun and engineers would visit the Milburn sawmill next week.
Mr Cadogan said Pan Pac's plans were ''great news'' for the Clutha district.
''I'm really pleased ... a company like Pan Pac is coming in with its resources and its ability to make a positive change in the district,'' he said.
