The Cornish Sawmill at Lostwithiel is to be reopened and could ultimately create 15 new jobs and training opportunities.
Members of the Cornish Woodmeet steering group have given their unanimous backing to the scheme which will be financed by the Halifax Bank of Scotland and could qualify for Objective One grant funding.
The Stoke Climsland-based woodland charity the Silvanus Trust has been working with the owners of the sawmill, Duchy Timber, for the past two years to bring it back into production.
The owners claim it was forced to close because its markets had been eroded by cheap imports from eastern Europe. But the Silvanus Trust believes market conditions have now changed and that the quality of the imports has deteriorated and prices have steadied, opening up more opportunities for local suppliers and woodland owners.
Investors interested in the future of woods and the local sourcing of timber will be able to apply for convertible preference shares in the sawmill which will initially be wholly owned and operated by the Silvanus Trust. The preference shares will be converted into equity in around five years time.
