Government tried to stop job losses at Kinleith Mill

Friday, 14 February 2025

Pictured: The Kinleith Mill south of Tokoroa

Stuff understands Shane Jones attempted to intervene to save jobs at Kinleith Mill, south of Tokoroa, before Oji Fibre Solutions (OFS) confirmed around 230 job losses on Friday.

OFS confirmed the news to staff at an open-air meeting on the mill’s grounds.

The announcement comes after months of consultation with staff and union representatives, following OFS’s proposal in November to simplify the mill’s operations by focusing on pulp production and discontinuing paper manufacturing.

The decision means the last paper machine will be permanently shut down in June, and the company will move to a paper import model for its packaging operations.

Chief Executive Officer Dr Jon Ryder said in a statement they recognised the impact of the decision.

“We know for many of our people and the local and regional community, this is not the news anyone was hoping to hear.”

Ryder said the closure will create a projected profit rather than ongoing losses for the mill as well as reduce energy footprint.

Stuff understands Jones, the Minister for Regional Development, has been working with the company on a potential intervention to save some of the jobs through redeploying workers to the pulp side of the business.

It's understood Jones had a phone call with the CEO earlier this month in which it was indicated the government was willing to consider co-funding some equipment to increase the resilience of the site and help reduce the cost of power, though support for that would be contingent on an attempt to save some of the 230 jobs disestablished today.

It's understood Jones has instructed officials from the Ministry of Business, Innovation and Employment's regional development unit Kānoa to engage with Oji on next steps.

Labour spokesperson Willie Jackson said “the Government has no plan to support workers” who are losing their jobs.

Tokoroa workers are bracing for the potential loss of over 200 jobs at Kinleith Pulp and Paper Mill. A meeting revealed a proposal to cease paper production, impacting families and livelihoods in the South Waikato town.

“It’s a disgrace that the Government can sit idly by and let thousands of people lose their jobs, after promising they would help, and then let this happen,” Jackson said.

Jackson’s comment comes after New Zealand First leader Winston Peters as well as other politicians attended a meeting in the Tokoroa community back in December discussing how Kinleith could be saved.

“Winston Peters promised that he would be an ‘advocate on your behalf’ and that ‘Kinleith Mill is the lifeblood of the Waikato’, yet here we are with another large employer closing its doors,“ Jacksons said.

The closure marks another blow to New Zealand’s manufacturing sector, which has faced a string of setbacks over the past year.