Iwi-backed hemp factory in Ashburton aims to expand despite lost overseas investor and a $12m funding gap

# What happened Craig Carr, a Mid Canterbury agribusiness leader, is pushing to expand a hemp processing operation based in Ashburton. The operation is a collaboration between Carrfields, Hemp NZ and Rubisco (formerly New Zealand Natural Fibres). The partners want to develop a full local hemp fibre value chain covering seed, cultivation, harvest and processing into end products such as textiles, acoustic materials, flooring and biocomposites.

# Why the expansion stalled

# Iwi investment and current fundraising After the overseas investor withdrew, Te Rūnanga o Arowhenua joined as a local iwi investor earlier in 2026. Arowhenua positions its investment as strategic and long term, aimed at combining economic development with kaitiakitanga and intergenerational outcomes. The joint venture is now raising about $12 million to fund further expansion of Rubisco's manufacturing capability and the broader natural fibre ecosystem in the region.

# Project aims and activities The partners want the supply chain to start at seed and end with finished fibre products manufactured in New Zealand rather than exported as raw materials. Specific aims reported include:

• Ashburton.
• Producing hemp fibre goods such as textiles, acoustic materials, flooring and biocomposites.
• Focusing on traceability, fibre quality and provenance to meet end‑market requirements.
• Supporting regional employment and sustainable land use.

Restoration already uses wool and hemp mats and plans a hemp cultivation trial in South Canterbury in partnership with Rubisco.

# Wider context and constraints

# Workforce and future plans Carr envisions a future fibre innovation hub and wants to create accessible pathways for young people into new materials industries. The current focus is on raising the funding needed to scale manufacturing and create the regional jobs that will underpin those industry pathways.

# Bottom line The Ashburton hemp project continues despite a withdrawal by an approved overseas investor. Local iwi investment has kept the project moving, and the partners are seeking $12 million to expand processing capacity and pursue a domestic hemp fibre industry that links farming with manufacturing and higher‑value end markets.