The Vanuatu Government has given its support to a new sandalwood oil distillation and wood processing facility proposed for Port Vila, a development expected to deliver a major boost for local growers, local manufacturing, and the wider Vanuatu-made agenda. VFIPA has also backed the Natural Treasures Vanuatu Ltd project.

Government support has been reflected through the Ministry of Agriculture, reinforcing the project’s importance for resource management, plantation development, and regulatory facilitation. Minister of Agriculture Hon. Ian Wilson acknowledged Mr Johan Nortier’s commitment to choosing Vanuatu for the investment and noted that he is not new to the country, having worked with local farmers over past years and built a solid understanding of the sector. The Minister said this is the kind of investment government wants to see and confirmed that government will support the project along the way. VFIPA has also confirmed its support through its handholding services for the development, noting that the project aligns strongly with the agency’s Investment Promotion Strategy 2026–2030 as well as the National Sustainable Development Plan.

Financial commitment to the facility is already in place, with an initial investment of AUD 250,000 committed to establishing the oil distillation plant and an accompanying wood-processing warehouse. The investment is expected to be launched mid-year, and the first shipment of machinery is already in the country for set-up.

The development reflects the kind of priority-sector investment that supports local value addition instead of exporting raw materials with limited downstream benefit.
“This development is about creating more value here in Vanuatu. By processing sandalwood locally, we can support our growers with stronger demand, fair and transparent purchasing, and better long-term opportunities while also promoting Vanuatu-made products to international markets,” said Mr Johan Nortier.

For local farmers, the proposed business model signals a shift toward more reliable and equitable trade. The operation intends to source sandalwood directly from local growers, eliminating intermediary bottlenecks. This direct sourcing model will be backed by transparent documentation and a commitment to fair, competitive pricing, providing rural communities with stronger market opportunities and improving overall value retention within Vanuatu's borders.

The company’s business overview highlights a dedication to sustainable supplies, robust staff training, and achieving strict international certifications. By strengthening the demand for legally sourced sandalwood and creating a domestic manufacturing pathway, the industry can better protect its natural resources from over- harvesting while maximizing economic returns.
Mr Nortier said the project is designed to deliver practical benefits across the value chain, from growers and suppliers to workers and export markets. He said the facility will help retain more value within Vanuatu by creating a domestic manufacturing pathway for sandalwood, while also supporting employment, skills development, and stronger confidence in legally sourced and sustainably managed products.
He added that local processing will help strengthen the wider Vanuatu-made agenda by turning raw materials into premium finished products that can better represent the country in regional and international markets.

Ultimately, the establishment of this facility supports the broader national agenda to promote and elevate "Vanuatu-made" goods on the world stage. By transitioning from exporting raw timber to manufacturing premium, internationally certified sandalwood oils and products locally, Vanuatu is positioned to enhance its global brand. This investment not only stimulates rural economies but also demonstrates how domestic manufacturing can drive sustainable, long-term prosperity for the nation.

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