The business employs 510 workers across six manufacturing sites in Bay of Plenty, Thames and Auckland, producing radiata pine wood products for export.
Coincidentally, a Government-commissioned report on international trade barriers for log and wood product exports was also published yesterday.
The business employs 510 workers across six manufacturing sites in Bay of Plenty, Thames and Auckland, producing radiata pine wood products for export.
Coincidentally, a Government-commissioned report on international trade barriers for log and wood product exports was also published yesterday.
Claymark site on Vaughan Rd, Rotorua. Photo / File
Ballingall, an economist with Sense Partners, prepared the report for the Ministry of Foreign Affairs and Trade.
It used data from 104 countries since the year 2000.
It found "global markets for logs and wood products are highly distorted," meaning New Zealand exporters are facing many challenges such as tariffs, export restrictions, standards and border inspections.
Claymark sawmill, Katikati. Photo / File
Tariffs are typically higher for more processed products than logs.
The report also found at least 39 countries have log export bans, to grow their processing sectors domestically instead of importing them from the likes of New Zealand processors.
For example, Ukraine imposed a 10-year ban on log exports in 2015.
China is the largest market in the world for processed wood products, but even its preferences for New Zealand's processed products have declined since 2006.
Ballingall said record prices for New Zealand logs were also "significantly" driving up costs for processors.
New Zealand Wood Processors and Pine Manufacturers Association chief executive Jon Tanner told the Rotorua Daily Post Claymark was not a member of the lobby group, but it was "a major exporter".
He said the processors and manufacturers were facing "unfair" market conditions.
Following this, Ballingall said, "fairness is in the eye of the beholder".
"Those in the forestry industry who are selling directly to China, for example, will probably think it's actually not unfair.
"They are benefiting from the fact that we are a big net exporter of raw materials and it's one of those trade-offs. The log industry is benefiting, the domestic wood processing sector is suffering."
FORESTRY
Ballingall declined to comment on what policies the New Zealand Government could use to support wood processors, as that was not covered in the report.
In a written statement, a Ministry of Foreign Affairs and Trade spokeswoman said the report was commissioned to inform the Government on how trade policies have affected the global market for logs and wood products.
She said the Government would "continue to prioritise opening up new market opportunities for New Zealand's exporters, including through tariff elimination and resolving non-tariff barriers to trade."
"The Government is also developing a forestry and wood processing industry transformation plan to identify the most viable commercial opportunities for investment in bio-technologies and bio-based products that utilise wood and wood fibre, and facilitate New Zealand to transition to a bio-economy.
"We encourage the wood processing industry to work with the Government, as this work progresses."
A Claymark truck in Rotorua. Photo / File
New Zealand exported a $2.3 billion worth of processed wood products in 2017 including paper, timber, pulp and panel products, Ministry for Primary Industries figures show.
Claymark has four sites in the Bay of Plenty, with three in Rotorua including the head office and one in Katikati.
It employs 230 staff in Rotorua and 160 in Katikati.
Claymark founder and managing director Mark Clayton. Photo / File
According to the receivers KordaMentha, Claymark has an annual turnover of about $160 million.
The receivers said they intended to continue to trade the business while they worked through the key issues.
Claymark's receivership is limited to New Zealand and does not affect any of Claymark's US-domiciled businesses.
