Northland mill set to close after ‘extensive efforts’ unable to find buyer

Wednesday, 24 June 2026

A Northland mill is set to close after a buyer was unable to be found.

A formal consultation process over the future of Juken New Zealand’s Northland Mill in Kaitāia began in March.

The union representing the workers at the mill said staff were left disappointment at the news.

National leader Christopher Luxon pointed blame for the closure at Labour’s policies while in government. Labour called his claim “ridiculous”.

A Northland mill is set to close, resulting in the loss of 60 jobs, and National and Labour are trading blame.

In March, Japanese-owned Juken New Zealand Ltd announced a formal consultation process over the future of its Northland Mill and Triboard Mill, both in Kaitāia.

At the time, Juken NZ Managing Director Hisayuki Tsuboi said the move reflected a “combination of ongoing structural and market pressures” affecting their operations, including “declining demand” in key export markets and increasing operating costs.

Marcus Coverdale of Workers First Union said staff from the Northland Mill were called to a meeting on Wednesday morning and told that no buyer had been found during the sale window.

In a statement, Tsuboi told Stuff that Juken today began a formal consultation process with employees regarding the proposal to close the mill.

He said the proposal reflected “challenging market conditions, including falling demand in key markets, rising costs and insufficient work to keep the mill operating sustainably”.

“JNL has made an extensive effort to identify a buyer or alternative pathway that would allow the site to continue operating, but this has not resulted in a viable option at this time.”

Tusboi said the Triboard Mill isn’t impacted by the proposal, and the process to explore a potential sale of that site as a going concern is continuing.

“No final decisions have been made. We are committed to a thorough consultation process and are seeking feedback from employees and union representatives before determining next steps.

“We recognise the impact this will have on employees and their families and are providing access to support services throughout the process,” he said.

Coverdale said staff were left “disappointed” in the news, but mentioned a window was still open for the Government to “step up and push for a solution”.

'Now is the time for a localised solution to save our manufacturing industry and our skilled woodworkers,” he said.

Luxon blames Labour for closures

Responding to the news of the impending closure, Prime Minister Christopher Luxon took aim at the previous government, saying a “failed Labour-Greens energy policy” of banning oil and gas exploration cost workers their jobs.

“When you think about policy that ends up with people losing their jobs because of a failed energy policy, that’s what we have been fixing up,” he told reporters on Wednesday.

Luxon said the news would be “incredibly challenging” for Kaitāia, and that the Ministry of Social Development was working “closely” with impacted families on the ground.

“We don’t want to see our mills shutting down, we don’t want to see regional New Zealand losing jobs,” he said.

Labour called Luxon’s claim “ridiculous”, with senior minister Carmel Sepuloni saying the Northland Mill closure had nothing to do with Labour’s policies while in government.

“We know that this is not the first mill that has shut in the last two and a half years. We know that they have been very clear that energy costs are a big part of it, but it’s certainly not because of anything that Labour has done.

“What is disappointing is that we’ve now got a government who wants to invest in the LNG fund when they have been advised that this is not going to provide the solutions or answers for mills or companies like this,” Sepuloni said, referring to officials’ advice on procuring an LNG import terminal that has since been downplayed.

Sixty jobs at risk, but ‘not all hope’ lost

According to Workers First Union, the Northland Mill employs around 60 people, with 40 union members who have redundancy provisions and may be able to access redeployment or other options.

Coverdale said the mill’s Collective Agreement has expired, and it was “unlikely” that bargaining for a new one-month term prior to a closure would commence.

“I think union members have been frustrated as the company continues to talk about ‘good faith’ without guaranteeing their future or making any gesture of that nature,” he said.

“But not all hope is lost, and it’s now time to wait to see if this Government will offer the mill workers a lifeline or if we’re set to lose yet another important wood manufacturing facility.”

Coverdale had previously told Stuff the impact of the mill’s closure would be “devastating” for Kaitāia.

“There’s a lot of concern in the wider community … all the delivery drivers, those contractors that go in to do the electrical work, and also the small town businesses that enjoy the support that comes from people that have wages to spend,” Coverdale said.

Mayor: ‘This will hit hard’

Far North District acting mayor Chicky Rudkin said the council’s thoughts were with the workers and their whānau.

“At a time when the cost of living, housing pressures, and fuel prices are already weighing heavily, news like this will hit hard,” she said.

Rudkin said the council supported the approach Juken NZ is taking, adding that this will be a “difficult process for them as well”.

“We are encouraged to hear that Triboard is not impacted and that work is continuing to explore a potential buyer for that site.

“That creates an opportunity for the future, and when the time is right, we look forward to working alongside any new owner to ensure outcomes that are positive for our people and for the Far North.”

Rudkin said they will be “working closely” with central government, other agencies and stakeholders to support those affected.

“Right now, the priority is making sure our people feel supported, heard, and not alone in this. We will continue to stay engaged as this process unfolds,” she said.

Final decision next month

The potential closure of Northland Mill would be the seventh major wood processing site lost under the government.

A final decision on the proposed closure is expected by July 16.