Up to 1000 contractors in Marlborough are thought to be reaping the benefits of a large new forestry block in the Waihopai Valley, near Blenheim.
The block is owned by forestry company Timbergrow, which is a subsidiary of the powerful Tiong family of Malaysia.
The family have investments in a slew of industries around the world and their portfolio includes a controlling 53 per cent stake in New Zealand King Salmon.
Timbergrow forestry managers Blair Townsend and Trevor Tidey could not be contacted.
But Thomas Song, managing director of sister Tiong forestry company Ernslaw One, said contractors had started in July planting radiata pine seedlings on 800 hectares in Marlborough.
He believed at least 1000 Marlborough contractors had been employed to help develop the block.
More seedlings would be planted on a further 2600ha of the same block near the Waihopai Spy Base during the next two years, Mr Song said.
The company had been attracted by the low land prices, and was looking for more sites in Marlborough, he said.
"We're continuing to plan our vision in the long term. We're very bullish about New Zealand forestry."
Their confidence came from increasing demand, particularly from China but also expected from India in five to 10 years.
"We can see India moving up to be the main demand ... it is the price-setter for soft wood."
India's requirement that wood exports be fumigated with methyl bromide has stirred debate in Picton, with some residents concerned about the affect of the gas on their health.
Tests in January showed methyl bromide levels at Waitohi wharf and Picton jetty were well below the Environmental Risk Management Authority's benchmark for an allowable and safe level of methyl bromide.
The Government has set a deadline of 2020 for all methyl bromide gas to be recaptured after fumigation.
The first logs from the Waihopai block will not be ready to harvest for 15 years. That wait, and the small size of the block ruled out any plans for a mill, Mr Song said.
Tiong companies have a total of 100,000ha planted in forestry throughout New Zealand, making them the fourth largest forest owner in the country.
The companies collectively exported 1.4 million cubic metres of logs a year, at a value of $380 million, Mr Song said.
Marlborough Forest Industry Association president Kevin Parkes said he welcomed news of the development.
With a holding of more than 1000ha, the Tiong development was one of the big players in Marlborough, albeit on the smaller end. Nelson Forests had the biggest holding of 19,000ha, according to the latest figures available from 2005. Flight timber had 5000ha, while Marlborough Regional Forestry (a Marlborough and Kaikoura district councils operation) totalled 3100ha, Mr Parkes said.
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