Source: Radio New Zealand
Juken New Zealand’s Northland Mill, on Whangatane Drive on the northern fringe of Kaitāia. Peter de Graaf
One of Kaitāia’s biggest employers could be shut down with the loss of hundreds of jobs if a buyer can’t be found by the mills’ Japanese owners.
Juken New Zealand owns two timber mills in the Far North town, one producing sawn timber, the other a Triboard product used in construction.
High costs – power especially – have long cast a shadow over the future of the two mills, but Juken NZ has now signalled its intention to exit the Far North town of about 6000 people.
The news has been greeted with dismay in Kaitāia, a town with few other employment options.
Far North Mayor Moko Tepania said news of the mills’ possible sale or closure would be concerning for employees, their whānau and the wider Kaitāia community.
His priority was “to understand the situation fully and work alongside Juken as they explore options in a very tough economic environment”.
Tepania said the Far North District and Northland Regional councils would be seeking support from central government.
“Given the scale of the potential economic impact, we’ll be advocating strongly for government involvement. Councils can’t advocate for this alone, we need all partners at the table.”
Juken New Zealand’s mills employ hundreds of people in Kaitāia. Supplied / Juken New Zealand Ltd
Juken NZ managing director Hisayuki Tsuboi said the company had started consulting staff about the future of its Northland Mill and Triboard Mill.
“This reflects a combination of ongoing structural and market pressures affecting these operations, including declining demand in key export markets and increasing operating costs.”
Tsuboi said the company had been working for several years to improve financial performance at its Kaitāia sites, including by increasing production and exploring new markets.
As part of that process, the company was exploring whether the mills could stay open under a different structure, including a potential sale or joint venture.
“We are taking the mills to market to assess whether there is interest from potential buyers. Our focus is on testing whether there is a viable pathway that would allow the mills to continue operating and to preserve employment where possible.”
Tsuboi said the company had started engaging with employees and unions.
Union understands both Juken mills put up for sale
About 145 employees at the two mills are represented by Workers First Union, while others are members of E tū or are non-unionised.
Workers First deputy secretary Anita Rosentreter said the union understood both mills had been put up for sale, with a tendering process taking place over the next eight weeks.
She was convinced Juken’s Kaitāia workforce was irreplaceable.
“We don’t believe any potential buyer could look to replace or make redundant the current mill workforce, who have decades of experience in the wood processing industry and could not be easily replaced.”
Rosentreter said New Zealand’s wood industry had been decimated in the past two years, with hundreds of jobs lost at Winstone’s pulp and saw mills in Ruapehu, at Oji Fibre’s Penrose pulp mill and Kinleith’s paper machine, and the Carter Holt Harvey sawmill in Nelson.
“We can’t afford to lose more of our manufacturing industry when our economic sovereignty and good local jobs are more important than ever. The wood industry provides many good jobs in Aotearoa, and it should be growing, not shrinking.”
With investment in wood processing, New Zealand could return to making quality wood products locally rather than simply shipping raw logs overseas.
Juken New Zealand’s Kaitāia-made Triboard product is used in residential and commercial buildings. Supplied / Juken New Zealand Ltd
In the meantime, the Kaitāia mills would continue as normal, with no immediate changes to production or customer arrangements.
Northland Regional Council chairman Pita Tipene said the councils, together with regional economic development agency Northland Inc, were committed to supporting Juken as it worked through the consultation process.
“We’ve already had initial discussions with Juken and will continue to engage closely with them to understand what pathways may exist … We’re willing to work together to investigate every avenue, advocate for our communities, and support efforts to secure a sustainable future for the operation in Kaitāia.”
Juken NZ’s announcement on Friday was overshadowed at the time by serious flooding in parts of northern Kaitāia.
Hundreds of people were evacuated from their homes on Thursday night, and floodwaters overtopping stopbanks swamped Pak’n Save’s service station and caused serious damage at a nearby ITM store.
The potential Kaitāia mill closures come just days after Heinz Watties announced it was shutting down manufacturing sites in Christchurch, Dunedin and Auckland, as well its frozen packing lines in Hastings.
It also comes amid a raft of other mill closures around regional New Zealand, with many owners blaming high energy costs.
They include the paper production line at Kinleith Mill in Tokoroa (with the loss of 230 jobs), Eves Valley Sawmill in Tasman (140 jobs), and Karioi Pulpmill and Tangiwai Sawmill in Ruapehu (200 jobs).
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
