'A difficult process': Kaitāia mill to close after no buyer found

Juken New Zealand Ltd says it has begun a formal consultation process to close its Northland Mill in Kaitāia after failing to find a buyer.

In March, the Japanese-owned company announced a formal consultation process over the future of its Northland Mill and Triboard Mill.

The proposed closure would impact around 60 people employed at the Northland Mill.

JNL director Yasufumi Tsuchiya confirmed to 1News that the company made "an extensive effort to identify a buyer or alternative pathway that would allow the site to continue operating, but this has not resulted in a viable option at this time".

"This proposal reflects challenging market conditions, including falling demand in key markets, rising costs and insufficient work to keep the mill operating sustainably," Tsuchiya said in a statement.

Triboard was not impacted by the proposal, and he said the process to explore a potential sale of that site was continuing.

"No final decisions have been made. We are committed to a thorough consultation process and are seeking feedback from employees and union representatives before determining next steps."

Earlier today, Workers First organiser Marcus Coverdale said staff from the JNL-owned mill in Kaitāia were called to meeting at 6.30am, and told that no buyer had been found during the sale window, and a proposal to close would open for consultation from July 8.

"We’re disappointed that no buyer has been found for Northland Mill but there is still a window for central Government to step up and push for a solution," he added.

'News like this will hit hard' – acting Far North Mayor

Kohepu Acting Mayor Chicky Rudkin acknowledged the mill closure, saying "our thoughts are with the workers and their whānau who will be feeling a real sense of uncertainty right now".

"At a time when the cost of living, housing pressures, and fuel prices are already weighing heavily, news like this will hit hard," she said.

"We acknowledge that no final decision has been made, and that Juken is entering a formal consultation process. We continue to support the approach they are taking and the way they have kept communication open with us. We know this will be a difficult process for them as well.

She said the council was "encouraged to hear that Triboard is not impacted and that work is continuing to explore a potential buyer for that site".

"That creates an opportunity for the future, and when the time is right, we look forward to working alongside any new owner to ensure outcomes that are positive for our people and for the Far North.

"We will be working closely with central government and other agencies, stakeholders, and with leaders across the country to support those affected, and to continue advocating for opportunities that strengthen our local economy."