Northland Mill owners confirm closure, 60 jobs under threat

Northland Mill is closing down, with no buyer or government investment stepping in to save 60 jobs under threat.

The owner, Japanese forestry company Juken New Zealand (JNL), announced in March it wanted to exit Kaitāia and put its two mills on the market.

Director Yasufumi Tsuchiya said the decision comes after work to try to find a buyer, or an arrangement that would allow Northland Mill to operate in a financially sustainable way.

"Despite those efforts, we were unable to identify a viable pathway forward."

He said the company undertook a consultation process with employees and union representatives over the past week, considering feedback.

About 60 people work at the Northland Mill, while 140 are employed at the Triboard Mill, which may also be put up for sale.

Tsuchiya said the company is in discussions with staff about redeployment opportunities across the company, as well as access to financial aid, wellbeing support, and employment and training opportunities.

"Many people have dedicated years of service to Northland Mill, and we acknowledge the impact this decision will have."

When the closure was announced last month, a union organiser said there was shock and disappointment in Kaitāia.

Just days ago, Northland leaders urged the government to invest in proposals to save the two Kaitāia mills, warning time was running out.

The mill is scheduled to close on 21 August, with production activity gradually reducing over the coming weeks as remaining work is completed.

"JNL remains committed to New Zealand and to maintaining a sustainable forestry and manufacturing business here."

While the mill is closing, Tsuchiya said JNL remained open to potential buyers and exploring opportunities with the land and assests.

He said the process to explore a potential sale of Triboard as a going concern continues.

The director said decisions about Kaitāia mills had been made with the long-term viability of the wider business in mind.

Speaking to Checkpoint on Tuesday, before the closure was confirmed, Workers First Union spokesperson Savage said he was disappointed at the lack of government intervention.

Staff were facing redundancy with four weeks notice, he said, and the job losses would shrink the economy of the small town leading to people moving away.

He believed JNL had underinvested in the mill which could have been profitable.