Gisborne mill to close with 60 jobs to go three days before Christmas

Friday, 17 November 2023

A Gisborne mill that has operated since 1994 is closing down permanently, with 60 staff losing their jobs 3 days before Christmas.

Staff at the Juken New Zealand mill, which employs 80 people, were informed late last month that demand for the mill’s products had declined, and 3 options had to be considered.

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.

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. Demand for the mill’s products has continued to decline over the past 5 years and is not expected to improve. The mill’s age also meant it needs significant investment if it is to continue its effective production and safe operation.

On Friday, Juken New Zealand managing director Hiroyuki Kawado informed staff that, following consultation, a decision had been made to close the mill by the end of March 2024.

“It is our intention to complete all work in progress by 22 December 2023 and then stop production. This will directly affect around 60 employees. A transition crew of 20 will ensure the mill can remain operational until 31 March 2024, at the latest,” he said.

“It is with sadness that I have advised them that the decision has been made to stop production as we cannot continue with the ongoing losses being made by the mill and have not identified an alternative solution that will turn the situation around.

“While we are still open to having conversations about selling the business, or part of the business, to suitable buyers, this is likely to take a significant amount of time,” he said.

Kawado said the company was consulting with affected staff to understand who may be interested in being part of the transition crew or redeployment within the company’s wider business.

“Notice of redundancy will be given once we have considered all requests for such roles. That is likely to be given next Friday,” he said.

“This is a difficult time for our people at the mill, and we acknowledge how hard this news may be for them and their whānau. Hence, we will have comprehensive support in place to assist them to find new employment including an opportunity to meet with local employers and training providers on-site.

“We are also engaging with local community leaders including the Gisborne District Council and Trust Tairāwhiti. The support that has been offered throughout the community is appreciated.”