New hope for future of Whakātane mill

Wednesday, 14 April 2021

Labour MPs Tamati Coffey and Kiri Allan held meetings with workers and others in March to see if the 80-year-old Whakātane mill and its 210 jobs could be saved.

A prospective buyer has appeared for the troubled Whakātane Mill.

The mill confirmed last month that it would close at the end of June, putting 210 staff out of work, because its Swiss owner SIG Combibloc, had not been able to find a buyer.

But now SIG, which reportedly had the mill on the market for two years, says it has received an expression of interest from a buyer.

A spokesman said there was little to report. ‘’Discussions are still at an early stage.”

* Whakatāne mill closure confirmed, 210 jobs to go

Whakātane has been worried about the mill’s closure, coming hot on the heels of Covid-19 and the Whakaari/White Island eruption which has severely impacted its tourism sector.

* Wood industry 'needs discussion' as Whakatāne mill flags closure

The mill, which makes packaging, has been exporting most of its products to SIG, which has since found an alternative supplier.

It is one of Whakatāne's largest private employers and many of the workers are second or third generation workers.

However, SIG warned that closure was still “a very real prospect, and steps to work through the wind-down process will continue unless a binding deal is reached”.

Acknowledging the uncertainty the workers were facing, SIG said it had put in place “numerous measures” including HR and employee assistance programme services.

All mill staff, unions and other related parties were being kept informed, SIG said.

If the closure does go ahead, the mill will cease production on June 21, and then begin decommissioning the plant, with an expected final closure date of June 30.

First Union spokesman Jared Abbott said workers were being cautious about the news, as many had already made plans.

“It’s obviously a really positive step but there's a range of different circumstances with the workers there. Some people have already got other work lined up, some people probably expected to take the redundancy payment and retire, and some people will be extremely glad that there will be ongoing work there,” Abbott said.

First Union and E tū, the other union representing the mill workers, have consistently argued that a new buyer could adapt the existing plant, to keep the mill manufacturing pulp and paper products.