Shane Jones offering support to Kinleith pulp mill, after paper mill closes

Friday, 14 February 2025

Resources Minister Shane Jones has renewed his attack on large power firms in the wake of the Kinleith paper mill closure, accusing them of mercenary commerce.

Resources Minister Shane Jones has suggested the Government may need to provide help from the Kānoa regional development fund to help secure the future of the Kinleith pulp mill.

Japanese owner Oji Fibre Solutions today announced the closure of the pulp mill’s associated paper mill with the likely loss of about 230 jobs.

While the fate of the paper mill has been sealed, Jones said the pulp mill remained an “essential ingredient” for up to 10 nearby timber mills and voiced concerns it along with other businesses could come under pressure from high power prices.

The profitability of the timber mills would be at risk if they didn’t have the ability to sell sawdust and “other detritus that comes from cutting timber” to the mill, he said.

“Unless we boost flood resilience, number one, and, number two, secure long term, internationally competitive power prices, I'm not confident about regional manufacturing growing in New Zealand.”

Jones renewed his assault on electricity generators, saying high power prices were the “number one reason” why Oji had decided to close the paper mill and accusing them of “mercenary commerce”.

Up to 230 jobs in Tokoroa are likely to be cut as a result of the paper mill closure.

“While men and women are going home unemployed tonight, the executives of the ‘gentailers’ are applauding super profits,” he said.

On Tuesday, Jones warned NZ First intended to put “substantial energy restructuring” top of its agenda after the next election, if an existing government-ordered review of the sector didn’t deliver better prices and “an abundance of energy”.

Jones revealed to The Post that he wrote to Oji Fibre Solutions’ New Zealand chief executive Jon Ryder on February 4, after it became clear to him the paper mill would close, voicing the Government’s willingness to engage with the firm to strengthen its industrial operations in the region.

He also sent a senior official from the Ministry of Business, Innovation and Employment (MBIE) to Japan in December to engage with the company’s Japanese owners.

Oji planned to consider whether there was something it could do with its own resources “and an appropriate level of level of involvement from Kānoa” to protect “what’s left of the industrial estate”, Jones said.

“I’ve asked them to bring me back some options.”