VANUATU has welcomed the establishment of a new sandalwood oil processing facility in the capital, Port Vila.
“This is the kind of investment the government wants to see,” Agriculture Minister Ian Wilson said.
The project will be a significant boost for the manufacturing sector, bringing in around VT20 million. It comes as Vanuatu looks to shift focus from just exporting raw sandalwood to value-added local processing.
The facility, scheduled for a soft launch in June, will employ more than 20 locals and source sandalwood directly from farmers.
By cutting out middlemen, growers are expected to benefit from fairer pricing and stronger market access.
Investor Johan Nortier said the aim is 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 explained.
The plant will start out small, before expanding operations and developing additional sandalwood products.
Export markets are expected to include China, India, and Europe, focusing on essential oils and premium sandalwood goods.
The project, developed by Natural Treasures Vanuatu Ltd, has received strong backing from the Vanuatu Foreign Investment Promotion Agency (VFIPA) and the Ministry of Agriculture, which say it aligns with national goals to expand manufacturing and strengthen resource management.
Officials say the investment will not only create jobs but also boost Vanuatu’s export earnings.
