Oji – Project Sakura

Project details

  • Client

    Oji Fibre Solutions

  • Services

    Cost Management & Quantity Surveying

  • Location

    Christchurch

  • Sectors

    Industrial & Logistics

This award-winning project involved a new 32,000 m² purpose-built manufacturing and logistics facility on a 77,000 m² site in Hornby, Christchurch to meet increasing demand for sustainable packaging. Oji Fibre Solutions is a leading producer of pulp, paper, and fibre-based packaging for local and global markets, with most of its operations based in New Zealand.

The development consolidated multiple production functions under one roof, including manufacturing areas, high-bay warehousing, offices, amenities, and covered loading docks. Designed for operational efficiency, the facility integrates advanced packaging machinery and large-scale materials handling systems to streamline production flow.

Delivered under a Design and Build contract, the project had an ambitious 12-month programme. Despite significant disruption to global supply chains during the Covid-19 period, the facility was completed on time and to specification, demonstrating strong collaboration between the client and contractor.

This project received the Gold Award at NZ Commercial Project Awards in 2023.

Services provided

WT provided full Quantity Surveying and cost management services throughout the project lifecycle, including:

  • Early-stage review and estimation of design information under the Design & Build contract
  • Identification and evaluation of project risks from both contractor and client perspectives
  • Detailed cost planning and budget alignment during design development
  • Ongoing cost tracking and financial control during construction
  • Assessment of variations and payment recommendations
  • Support to ensure final costs and value outcomes remained consistent with Oji’s investment expectations

Challenges

The 12-month construction programme demanded tight coordination between design, procurement, and on-site delivery. Because the facility was designed around specialised manufacturing and packaging equipment, many of the key plant components including automated conveyor systems, material-handling cranes, and imported machinery housings had to be integrated into the building design early. Any shift in equipment specification had downstream implications for structure, services, and budget.

Global supply-chain disruptions during the Covid-19 period added further uncertainty. Extended lead times for imported steel, mechanical systems, and fit-out materials placed pressure on sequencing and cost allowances. WT worked closely with the contractor to monitor the financial impact of these delays, adjust contingencies where necessary, and ensure that risk allocations between the client and contractor remained fair and transparent.

Successes and value added

WT’s early engagement allowed for transparent cost planning within the Design & Build framework, giving Oji confidence that commercial risks were well understood and actively managed. Our proactive communication with the contractor meant emerging design or procurement changes could be priced quickly and accurately, keeping financial controls aligned with construction progress.

By maintaining a disciplined approach to variation assessment and value management, WT supported real-time decisions that balanced operational requirements with cost efficiency. This approach ensured that quality and functionality targets were met without budget overruns, even in the face of global material volatility.

WT’s continued involvement from design through to completion helped deliver a complex manufacturing facility on schedule – a significant achievement given the external challenges. The result is a modern, scalable production hub that strengthens Oji’s capacity to meet New Zealand’s growing demand for sustainable packaging.

Awards

  • Gold award at NZ Commercial Project Awards in 2023

Project lead:

Stephen Wells

Director – Quantity Surveying

Steve Wells Director Quantity Surveying New Zealand WT