Relief for workers after Whakatāne Mill sold

Monday, 31 May 2021

Whakatāne Mill’s new owner says the Bay of Plenty site will remain open, bringing relief to more than 150 workers.

The mill, one of the largest employers in the region, has been bought by The Smurfit Consortium, it was announced on Monday.

The mill produces folding box board and has been running since the 1930s.

In March, it was announced the site would close at the end of June because its Swiss owner, SIG Combibloc, had not been able to find a buyer.

Whakatāne has been hit hard by Covid-19 and the Whakaari/White Island eruption severely impacted its tourism sector. (File photo)

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But after reportedly having the mill on the market for two years, SIG said in April it had received an expression of interest from a buyer.

E tū union delegate at the site, Robert de Raat, said most workers were pleased to hear the mill would not be closing.

“There are families where three or four generations have worked at the mill, and people want to see this employment opportunity stay for their kids.”

E tū organiser for Whakatāne Mill, Fiona McQueen, said there was a sense of relief the months of uncertainty had come to an end.

“People wanted the doors to stay open so that jobs could remain in this community, and we have worked with the company to make sure there are good outcomes and benefits for all involved.”

Smurfit Consortium spokesman and incoming chairman of the Whakatāne Mill, Ian Halliday, said the consortium looked forward to developing a more competitive operation to support customers in New Zealand and around the world.

“We believe that the Whakatāne Mill has a very bright future as the only folding box board mill in Oceania, and we intend to invest heavily in the mill to support both our customers and New Zealand’s forest products industry,” he said.

The mill will stop production of liquid packaging board and focus on making folding box board, carrier board and food service board, all of which are currently manufactured at the site.

Whakatāne Mill Limited general manager, Juha Verajankorva, said the sale was a positive outcome and represented a new and exciting era for the mill.

All senior management will remain under the new owners.

“Our preference was always for a sale of these assets so that they could continue to be productive. It took until almost the final whistle, but this is a satisfying outcome.”

Confirmation of the sale was also welcomed by the Employers and Manufacturers Association (EMA).

Chief executive Brett O’Riley said Whakatāne had dealt with ups and downs in recent years, with significant investment from the Provincial Growth Fund generating exciting new developments, mixed with devastating impact of the Whakaari/White Island eruption and the Covid-19 pandemic.

'The potential loss of the mill would have been a further blow as it is one of the largest employers in the town, and a key part of the Eastern Bay of Plenty pulp and paper ecosystem.

“It’s great news that a rescue package of international and local investors has come together to shore-up the future of the mill and the livelihoods of its workers.'

E tū assistant national secretary Annie Newman said although the mill’s future was now secure, the upheaval in many industries highlighted the need for a national strategy around the concept of a “just transition” for workers.

“We need to ensure the future of work is about decent jobs and income stability – making sure people are prepared for change and have the opportunities to upskill and retrain when needed.

“Their voices also need to be at the heart of creating the solutions that will guide their working futures.”