Earthworks have started on the R1,3-billion PG Bison North Eastern Cape Forests Cluster development near Ugie, the company said yesterday.

PG Bison CEO Chris van Niekerk said the company aimed to make best use of renewable forest plantations in the Eastern Cape by creating various timber beneficiation operations close to the plantations.

The government has committed itself to providing infrastructure and services to support the development. “We are working very closely with the Eastern Cape and national governments, which are in full support of the project,” Van Niekerk said.

The development represents a significant economic injection for the region, with almost 3 000 direct jobs to be created, with an initial annual salary bill of R88-million.

The development will also present a number of opportunities for local entrepreneurs to provide supporting services.

The bulk earthworks contract has been awarded to Grinaker LTA.

The development centres on a 1 000m³-a-day particle board plant covering about 36ha of the 64ha site that is designed also to accommodate future possible timber beneficiation processes.

The timber for the plant will be supplied from PG Bison‘s own plantations.

The R206-million press will be the largest of its kind in Africa, producing quality board for both the domestic and export markets. The first board will be pressed in January 2008.

Construction tenders are being evaluated, with the company saying that about 78% of the total project costs will be spent locally.