Over 230 workers will lose their jobs as Winstone Pulp International (WPI), the Ruapehu District’s largest employer, confirms it will shutter two mills in the central North Island.
Staff were told of the decision this afternoon, with production already on hiatus.
The company, which runs Tangiwai Sawmill and Karioi Pulpmill, proposed to indefinitely close its local operations at a meeting with staff last month.
WPI’s decision was originally meant to be announced on Monday but was delayed by around 24 hours.
Chief executive Mike Ryan said it considered staff feedback, but that it wasn’t enough to “offset the dual impacts of internationally uncompetitive energy prices in New Zealand, and the relatively low current and forecast market prices for pulp and timber”.
“We know this decision will hit our people and the community hard,” Ryan said in a statement.
“All of our people have been on full pay during the operational pause and consultation period. They will receive their redundancy entitlements in full, including working through their notice period.
“This was not a decision taken lightly. We gave due consideration to the feedback and alternatives put forward by staff and unions but have been unable to identify any viable options that enable the company to continue operations on a sustainable basis.
“There were a number of good ideas put forward that would make incremental improvements to our operations”.
It follows attempts by local mayors to keep the mills and public petitions to save jobs.
Ruapehu, Kawerau and Taupō district mayors met with Prime Minister Christopher Luxon and Regional Development Minister Shane Jones over the issue.
Electricity pricing core to decision
The company said it had “worked hard to consider all available options to keep operations going in some form.
“That included seeking long-term price certainty for electricity at levels that would enable us to be internationally competitive,” Ryan said.
“The nature of our operations means we need competitive pricing to be sustained over a long period, we cannot work around short-term price dips in the market.
“Even though current spot pricing has fallen significantly from the August highs, current electricity futures pricing indicates that nothing is going to materially change in the medium-term regarding wholesale market electricity pricing.”
WPI was first established over 45 years ago.
Workers were devastated at first announcement
In late August, workers told 1News they were shocked by the announcement.
Jude Sinai, a worker at Karioi Pulpmill, told Breakfast he was “devastated”.
“When the news first broke, I was looking across the room and there was actually a lot of shock and a lot of fear,” he said last month.
“You could see some stress and emotions playing over in each one of their minds.”
Sinai, who’s also a First Union delegate, said he’d received a lot of phone calls.
“A lot of distressed members, our partners that are crying, children that are upset – ’cause yeah, it has a huge impact on this community.”
He said the mills were “the backbone of the community” and the losses would be deeply felt: “We’re a very tight-knit community and it’s just heartbreaking.”
