Japanese-owned Pan Pac Forest Products began building the plant at Milburn, near Milton, in February this year.
Pan Pac general manager Michael Reaburn said everything was going to plan and the plant was expected to be completed by April next year.
''We do have a tight critical path in terms of the project but it's basically running to plan.''
The cost of the project was estimated to be about $23 million and would increase the capacity for employment to about 35.
The purpose of the project was to merge two separate Pan Pac sites, one at Milton and one at Milburn, into one.
''It's basically ... consolidating the operations on one site instead of at two.''
For the first few months little could be seen of the project, but a new shed can now be seen from the adjacent State Highway 1.
Where possible, Pan Pac tried to employ local contractors for the engineering work.
However, some of the major equipment had to be sourced from overseas suppliers in Europe and North America, Mr Reaburn said.
The project includes a new kiln, a new boiler, a large shed and dry mill.
Once Milburn had been been upgraded, the Milton facility would be closed and the operators would transfer to the expanded facility.
Pan Pac was established in New Zealand in 1971 with a sawmill north of Napier, in Hawke's Bay.
Pan Pac has a turnover of more than $350 million annually and exports to China, Japan and the US. It also makes some sales in New Zealand.
