Kawerau's Tasman mill confirms closure

Wednesday, 9 June 2021

Norske Skog’s Tasman pulp and paper mill at Kawerau has confirmed it will close.

The Norwegian-based company said it will sell the mill’s assets and stop production by June 30.

Tasman mill has been on shaky ground for some months.

About 160 people are employed at the mill and have been told they will receive full redundancy entitlements.

The 66-year old mill’s closure follows a strategic review that began at the mill last September 2020.

* Resignation in the air in Kawerau as mill consults with staff

* Norske Skog staff in talks as review on Tasman mill's future ends

Norske Skog’s regional president, Eric Luck, said the key reason for the decision was the ongoing decline of the newsprint industry, which had been further hastened by the impact of Covid-19 on itself and customers.

“I know that today’s decision is disappointing and sad for many people. It’s the end of an era, but the structural change in the newsprint industry provided no viable alternative for paper production at Tasman.

“The domestic market for newsprint has shrunk considerably and so too have export markets. Covid-19 has hastened the decline.”

Luck said the company will work with employees and their union representatives on the implementation plan for the closure of the mill, with the aim of making the process as smooth as possible.

Staff would be provided with counselling and outplacement services

Luck said the company wanted to acknowledge everyone who has worked at and for the mill over the last 66 years.

“It has certainly been an important contributor to the local and national economy”, he said.

The Tasman Mill commenced newsprint production in 1955 and has produced more than 15 million of tonnes of paper.