‘A bitter blow for the South Waikato’

Friday, 14 February 2025

Kinleith workers react to meeting.

“We’re moving to Australia.”

Those were the words shouted from the window of a passing car full of Kinleith Mill workers after hearing that at least 230 of them would be losing their jobs by the end of June.

Workers, who had gathered outside the mill’s administration block at 8.30am on Friday, were told by mill management that despite their best efforts they could not save the county’s only remaining paper making machine.

In November, the Waikato Times broke news that up to 230 jobs were likely to be cut at the Tokoroa-based mill as its parent company Oji Fibre Solutions (Oji) faced “extreme financial headwinds”, including high electricity prices.

21-year-old paper machine worker Steven Reid has lost his job at Kinleith Mill and will be looking for a new one at the end of June.

Dejected workers slowly made their way home after being told they could leave early on Friday. Many were still coming to terms with the fact they would need to start looking for new jobs.

One of those was paper machine worker Steven Reid, who at 21-years-old said he’d stay in Tokoroa.

He said maintenance at the site was a big problem.

Kinleith Mill workers leaving the site meeting on Friday after hearing that 230 staff would be losing their jobs.

“I kind of understand you can’t run a business making losses every year … but you can’t run a mill when it’s broken.

“A lot of us had given up, because nothing gets fixed.

“But come 30 June, I’ll be gone … I don’t know what I’ll do.”

Pulp mill worker Peter Mariu said as he was close to retirement he would be happy to take voluntary redundancy if it helped a younger worker stay in a job.

“These guys are the ones I feel for, my work here is just about done anyway.”

Aaron Bell said he had a wife and three children and had bought a house in the last two years.

Oji Fibre Solutions New Zealand chief executive Jon Ryder said they would have to import paper to supply its customers after deciding to shut down the mill’s paper making machine.

He said he may have to look for work outside of Tokoroa, even though he didn’t want to.

“There’s not much around here in Tok, or other avenues for jobs.”

Aaron Bell has a wife, three kids and a new house he needs to pay for, and is uncertain of his future at Kinleith Mill.

In a statement, Oji chief executive Jon Ryder said the mill would end its loss-making paper production plant and concentrate on pulp production.

It would instead import paper for its packaging operations.

“After extensive work and considering a variety of options and feedback from unions and our team, we see no feasible alternative to our proposal to simplify operations, which will keep Kinleith Mill operating, maintain jobs in the region and continue reliable supply of product to our customers.

“We will now work with our people on a new mill structure and processes, and the outcome of that work will define role requirements moving forward.”

E Tū Union negotiation specialist Joe Gallagher said the government had failed workers, and their actions were ‘a disgrace’.

Ryder said ending paper production would return the mill to profitability and reduce its energy footprint and exposure to the New Zealand energy market.

E Tū Union negotiation specialist Joe Gallagher said there were a lot of unhappy, angry and disappointed workers at the meeting.

“In our view they (Oji) haven’t taken anything we have said seriously.

“There has clearly been a lack of capital investment in this plant over the last 10 years, and that’s been further exacerbated by the power and the gas prices.

Pulp mill worker Lewis Peni said while his job was safe, for the moment, he felt for those families who had people working in the soon to be closed paper plant.

“The paper side of this business provides packaging for two of our critical industries like Fonterra and Zespri, and to hear the news today that they will now be importing this product … is a bitter blow for the South Waikato.”

He said at least 230, and possibly up to 260 people will lose their jobs as Oji continues to make changes at the mill.

He said that number did not include an estimated 50 to 60 independent contractors who also worked at the site.

“I think the company thought they were going to get abused … but workers were very respectful, very restrained, and were trying to process what it means for each and every one of them.”

Gallagher said Prime Minister Christopher Luxon talked a big game about driving economic growth but “if this was a running race, Christopher Luxon has just tripped at the first hurdle”.

“Our message to the prime minister today is - you have has failed, your government has failed, you do not care about manufacturing in this country, you do not care about New Zealand workers, and it is a disgrace.”

South Waikato mayor Gary Petley said he felt great sympathy for those affected - Petley has two sons and a daughter in law who work at the mill - but said there were some rays of hope for local workers.

He said the council had set up “Project Phoenix” to proactively support people who will be made redundant into new jobs and help contractors find new work.

He said multiple major new business and housing investments in the district would help offset the closure, and the subsequent loss of jobs.

These included the more than 300-home Overdale Estate housing development in Putāruru, the 187-home Strathmore Park development in Tokoroa, and the Maraetai Rd Business Park development where an estimated 200 jobs would be created.