Foresta Group Holdings has formalised a 30-year lease for its Kawerau site in New Zealand, marking a pivotal step in advancing its integrated biomass manufacturing ambitions.
- 30-year lease executed with Putauaki Trust for Kawerau site
- Lease includes option to extend for an additional 20 years
- Signing ceremony held at New Zealand Parliament with key officials
- Lease underpins Foresta’s strategic biomass manufacturing plans
- Supports development of renewable pine chemical production
Lease Execution Marks Strategic Milestone
Foresta Group Holdings Limited (ASX – FGH) has taken a significant stride forward by executing a formal lease agreement with the Putauaki Trust for a site in Kawerau, New Zealand. This 30-year lease, commencing 1 March 2026, with an option to extend for another 20 years, provides a stable foundation for Foresta’s long-term operations in the region.
The lease execution follows the satisfaction of conditions precedent under a previously announced agreement to lease, signalling the company’s commitment to its integrated biomass manufacturing facility project. The Kawerau site is central to Foresta’s strategy to become a global leader in natural and renewable pine chemicals and biomass pellets.
High-Profile Signing Ceremony
The formal signing took place at the Executive Wing of the New Zealand Parliament in Wellington on 9 February 2026. Foresta’s Executive Chairman Henry Cheng and Executive Director Dr Maurizio Fabiani were joined by Putauaki Trust Chairman Tiaki Hunia and CEO John O’Brien. The event was hosted by The Hon. Shane Jones MP, Minister for Regional Development and other key portfolios, underscoring the regional and governmental support for the project.
Also in attendance were Dana Kirkpatrick MP, Member for East Coast, and Faylene Tunui, Mayor of Kawerau, highlighting the strong local engagement and the importance of the project to the Kawerau community.
Implications for Foresta’s Growth
Foresta’s proprietary process extracts valuable pine chemicals such as rosin and terpenes, which are essential inputs for a range of industrial products including adhesives, inks, paints, and even perfumes. Securing a long-term lease at Kawerau not only anchors the company’s manufacturing footprint but also signals confidence in the region’s potential as a hub for renewable chemical production.
While financial terms of the lease were not disclosed, the agreement is a critical enabler for Foresta’s capital investment and operational planning. The extended lease term offers the company flexibility and security to scale its operations over the coming decades.
As Foresta advances this project, market watchers will be keen to see updates on construction timelines, production capacity, and how the company leverages this strategic foothold to expand its global footprint in renewable biomass products.
Bottom Line?
Foresta’s Kawerau lease cements its commitment to renewable manufacturing, setting the stage for growth and innovation.
Questions in the middle?
- What are the financial terms and capital commitments associated with the Kawerau lease?
- When will construction and production commence at the Kawerau biomass facility?
- How will Foresta’s operations at Kawerau impact its global market positioning and revenue forecasts?