‘Time is running out’: Councils’ plea to save hundreds of Northland mill jobs

Monday, 13 July 2026

Kaitāia's Northland Mill faces impending closure after no buyer found

Northland leaders are urging the Government to invest in proposals aimed at saving Juken New Zealand’s two Kaitāia mills, warning time is running out to avoid significant job losses in the Far North.

Northland Regional Council, Far North District Council and regional economic development agency Northland NZ said government backing was needed as discussions continue with potential investors interested in the Northland Mill and Triboard plant.

The call follows the end of Juken New Zealand’s sale process in May. The Japanese-owned company announced earlier this year it was seeking buyers for both mills after citing declining export demand and rising operating costs.

Last month, workers at the Northland Mill were told no buyer had been found during the sale process, with about 60 jobs expected to be lost.

Significant job losses are possible in the Far North with two mills set to close.

On Monday, Northland NZ head of investment Tui Rutherford said that government support could help secure a commercial redevelopment of the Northland Mill site while preserving jobs and protecting the region’s forestry sector.

“Conservative modelling predicts that investing right now will generate a good return over five years on an initial government investment,” he said.

“Acting soon also avoids economic damage and disruption which will cost the government dearly in the long term.”

But at a press conference today, Acting Prime Minister David Seymour said the minister for regional development, Shane Jones, hadn't raised this issue with Cabinet.

Juken New Zealand’s two mills in Kaitāia are at risk of closing.

“If you look at the incident or the events such as this that have occurred, I think where this government's landed is we can delay the change, but we can't forestall it forever. And therefore, it's critical that we don't end up throwing good money after bad,” he said.

While no outright buyers emerged before the sale deadline, Northland NZ said one party had expressed interest in continuing operations at the Triboard plant, while an experienced operator had expressed interest in redeveloping the Northland Mill site.

Northland Regional Council chair Pita Tipene said the councils were supporting Northland NZ to progress discussions with potential investors.

“This includes working on a consortium of investors to back the commercial upgrade plans for the Northland Mill site. That model would require investment by the Government,” he said.

The proposed redevelopment would retain the existing site, infrastructure and skilled workforce, while modernising equipment to target new markets.

Far North Mayor Moko Tepania said the mill remained well placed for future investment because of Northland’s forestry resource, experienced workforce and access to domestic and export markets.

Christopher Luxon responds to news of Northland Mill closure

“There is a significant opportunity to build on these assets, which are supported by experienced operators and well-established infrastructure,” he said.

The proposal also includes establishing a woody biomass biofuel operation using waste and low-grade timber, which is expected to retain some existing jobs.

Rutherford said early government investment would help secure the transition of the milling operations while providing a financial return.

“The regional economic agency is working alongside the councils to ensure potential investors understand the strategic value of the operations within Northland’s wider forestry system, along with the robust returns forecast.”

Last month, Prime Minister Christopher Luxon said the Ministry of Social Development was working with impacted families on the ground during an “incredibly challenging” time for Kaitāia.

“We don’t want to see our mills shutting down, we don’t want to see regional New Zealand losing jobs,” he said, without raising the possibility of government intervention.