Kaitāia timber mills may close with loss of hundreds of jobs

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. “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.”

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Source: RNZ

Follow up: Potential buyer emerges to save 200 jobs

The future of Kaitāia looks “hopeful and encouraging” after it was announced a buyer may have been found for two timber mills under threat of closure. The Far North mills face uncertain times after Japanese-owned Juken New Zealand (JNL) recently said it was looking to sell up and was engaging potential opportunities.

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Source: NZ Herald

Related: JNL business update

Statement from Mr Hisayuki Tsuboi, Managing Director, Juken New Zealand Ltd.

“Juken New Zealand has today begun a formal consultation process regarding the future of its Northland Mill and Triboard Mill in Kaitaia. This reflects a combination of ongoing structural and market pressures affecting these operations, including declining demand in key export markets and increasing operating costs.

We have been working over several years to improve financial performance at these sites, including increasing production and exploring new markets. Despite these efforts, we have not been able to return the mills to a sustainable footing under their current operating model.

As part of this process, we are exploring whether the mills can continue operating 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.

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Source & image credit: JNL