VT20M sandalwood investment to boost local processing
May 5, 2026 9:38 pm | Posted in Business News | Share now TwitterFacebook
Compiled by Nicholas Mwai.
A new sandalwood oil processing facility planned for Port Vila is set to inject an estimated VT20–21 million (AUD 250,000) into Vanuatu’s manufacturing sector, marking a push toward local value addition in the country’s sandalwood industry.
The project, led by Natural Treasures Vanuatu Ltd with support from the Vanuatu Foreign Investment Promotion Agency (VFIPA), is positioned as a priority investment aimed at shifting sandalwood production from raw exports to local processing.
The Government of Vanuatu has endorsed the project through the Ministry of Agriculture, which says the investment aligns with national goals on resource management, plantation development, and strengthening local industries.
Minister of Agriculture Ian Wilson welcomed the investment, saying it reflects the type of private sector engagement government aims to encourage.
“This is the kind of investment government wants to see,” he said, confirming continued support for the project.
VFIPA also confirmed its backing through its investment facilitation services, noting the project aligns with its Investment Promotion Strategy 2026–2030 and the National Sustainable Development Plan.
The developer said operations are expected to begin within a few months after final approvals, with a soft launch targeted for early June, depending on the arrival and installation of machinery.
Key equipment has already begun arriving in the country ahead of setup.
The facility is expected to begin on a small scale before expanding operations, with more than 20 jobs projected over time, mainly for local workers.
A core part of the investment model is direct sourcing from local sandalwood growers, removing intermediaries in the supply chain.
This approach is expected to improve farmer access to markets, increase transparency, and support more consistent and competitive pricing for local producers.
The investment also includes regulated harvesting systems supported by permits, alongside plantation development and imported sandalwood inputs to maintain supply stability while adding value locally.
The facility is targeting high value international markets including China, India, and Europe, focusing on essential oil and premium sandalwood products.
Investor Johan Nortier said the investment is designed to retain more value within Vanuatu.
“By processing sandalwood locally, we can support our growers with stronger demand, fair and transparent purchasing, and better long term opportunities while promoting Vanuatu made products internationally,” he said.
The investment is also expected to expand beyond its initial setup, with plans to scale operations and develop additional value added sandalwood products in future phases.
Ultimately, the project is positioned as part of Vanuatu’s broader effort to grow domestic manufacturing, attract private investment, and strengthen export earnings through value addition rather than raw material exports.
