Workers ‘gutted’ by proposed sawmill closure which will cost 142 jobs

Thursday, 21 August 2025

Workers have been left “gutted” after Carter Holt Harvey announced a proposal to close the Eves Valley sawmill, a move that could end 142 jobs.

Tasman mayor Tim King and Nelson mayor Nick Smith have confirmed they were told on Wednesday of a proposal to shut the sawmill, near Brightwater, after staff were told at 3pm.

There will be an 11-day consultation period with a final decision due September 4.

Smith said the proposal was to wind down the plant over the next two months with full closure taking effect in November.

E tū union team Leader Finn O’Dwyer-Cunliffe said workers were “gutted by the proposal”.

“Many of our members have been working at the mill for decades, including some who go right back to when the Eves Valley site opened in the 1980s.

“If the closure goes ahead, it will be hugely detrimental for workers and their families, as well as the wider community in the region.”

The union was working to provide as much support as possible to members through the difficult period, he said.

“Closure of the site is just a proposal at this time, and we are engaging with Carter Holt Harvey management to ensure workers’ voices and priorities are heard.”

King, who lives next door to the mill, labelled the move “bloody sad” and said it was hard to think of the area without the mill.

“The thought of it not being here, not operating, all these people coming and going every day, it's kind of very strange as a next door neighbour and someone who's grown up … before this mill and with this mill, it's a very odd feeling.”

Management contacted him personally after speaking to staff. While there had been rumours, it still came as a shock and now his thoughts were for the people affected, he said.

“My first thoughts are for them, their families and obviously the community that they live in.”

The impacts for the local economy would be huge, from the people who would need to find new jobs, to the 250,000 tonnes of wood that would need to go somewhere else to be processed, he said.

There would be a lot of “downstream implications”, he said.

He doubted there was much chance of changing Carter Holt Harvey’s decision, King said.

“We’ve got a role to support the community and then try and work through all those downstream implications, particularly those around logistics, traffic, trucking, and the impact on what is a massively important industry for our region, which is forestry.”

In a Facebook post, Smith labelled it a “huge blow”.

Smith said the plant was the largest sawmill in the South Island, built in the 1980s, and produced timber framing for the NZ building industry.

Carter Holt Harvey management told him the proposal was driven by wanting to consolidate their structural timber manufacturing to one site at Kawerau in the North Island, he said.

“They advised me that Kawerau had the advantage over Nelson of a larger wood resource in Kaingaroa Forest and access to geothermal energy.”

He said he asked if local or central government could do anything to try to save local jobs.

“They re-emphasised the closure proposal was all about consolidation and not something councils or government could alter. They were not seeking any assistance or other support. I tried, but I am not optimistic, of changing CHH’s mind.”

Smith said he’d contacted the Ministry of Social Development seeking support for the workers should the redundancies proceed, he said.

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He’d also contacted South Island Minister James Meager and Regional Development Minister Shane Jones.

“We will also need to have a discussion with Government about the broader economic development challenge for the region if this proceeds.”

“The blow to the region would not just be the loss of direct jobs at the sawmill, but the flow-on effect for other local businesses that support the plant.”

“This is just the worst possible news making for the crappiest winter I can recall for our region in decades with the Long Covid economy, multiple storms and now the likely closure of our largest sawmill.”

“My thoughts are with the affected families.”

West Coast-Tasman-based Labour MP Damien O’Connor said those at risk of losing their jobs were hardworking people.

“This will be a major blow to the community if it goes ahead.”

Nelson MP Rachel Boyack said the closure would hit the local area and flow on to the wider economy.

“We need more onshore wood processing to build homes and other infrastructure, not less,” she said.

Carter Holt Harvey have been approached for comment.