The jobs of 230 workers at Tokoroa’s Kinleith Mill could go amid a plan to shut down paper production.
The mill’s owners Oji Fibre Solutions have proposed permanently shutting the paper machine at Kinleith, impacting around half the mill’s 450-strong workforce.
Workers were called into a meeting at 8am this morning.
It comes just months after Oji’s plans to close its mill in Auckland’s Penrose were announced. Operations in Penrose are set to end shortly before Christmas.
Oji Fibre Solutions chief executive Jon Ryder said paper production has “suffered significant losses for several years and we see no prospect of the situation improving”.
Mill owners Oji Fibre Solutions propose permanently shutting the paper machine, impacting around half the 450-strong workforce. (Source: 1News)
“Due to the complexities of operational changes required at the mill for this proposal, the exact number of potential job losses is unknown at this stage. However, we anticipate approximately 230 roles may be affected,” he said in a media release.
“We propose to continue producing paper at Kinleith Mill through to the end of June 2025, to ensure we meet our packaging customer obligations and provide a smooth transition to new paper supply arrangements.”
Consultation with employees would continue until early January next year, according to the company, which said it would make a final decision by the end of that month.
“This is a difficult change to propose because of the impact on our hard-working team. We acknowledge the history and importance of Kinleith Mill in the local community and region and have made every effort to ensure we continue operating at the site.”
Union members were expected to be on the ground to support Kinleith’s workers.
Kinleith Mill has been in operation in Tokoroa since 1953.
It’s another blow for the manufacturing sector, with a number of closures this year and now job losses rolling into the thousands.