Juken NZ considering closing Gisborne mill, 80 jobs on the line

Monday, 30 October 2023

Eighty jobs in Gisborne are on the line with Juken NZ considering closing its local mill permanently.

Staff at the mill, which opened in 1994, were informed last Wednesday that demand for the mill’s products had declined, and three options had to be considered.

Juken New Zealand Ltd. managing director Hiroyuki Kawado said staff were called to a meeting and asked to consider the options.

The options include: Ceasing production until new markets and products can be found; putting the mill up for sale and likely ceasing production while we look for a buyer; or closing the mill permanently.

Kawado said the mill processed radiata pine from the company’s East Coast forests to produce a small range of specialised wood products, mainly for the Japanese housing market.

“Unfortunately, demand for the mill’s products has continued to decline over the past five years and is not expected to improve. The mill’s age also means it needs significant investment if it is to continue its effective production and safe operation,” he said.

Staff had been asked to provide feedback over the next two weeks.

”We acknowledge that this will be an upsetting process for employees, and we made confidential external support available to all of them,” Kawado said.

“We also assured them that if production does cease, whether temporarily or permanently, we will in the first instance consider any opportunities for redeployment within our wider business, including at our other sites,” he said.

He said the mill would operate as normal throughout the consultation process, with notification of a decision due by November 17.

The proposal didn’t affect any of the company’s forestry operations.