Whakatāne Mill investment a relief for locals after fears of closure

Prime Minister Jacinda Ardern visited the mill while on the election campaign. Photo/ RNZ

By RNZ

There is relief in Whakatāne that the town's biggest employer has been thrown a lifeline - and the community isn't facing yet another economic hit.

The Whakatāne Mill, which is Oceania's only folding boxboard manufacturer, was slated for closure at the end of June.

But last week its current owners announced it would be sold to the Smurfit Consortium, which includes a number of New Zealand investors.

Local woman Marie said everyone knows someone who has worked at the mill.

"My husband worked there, a long time ago, then he got his nephews in," she said.

The closure of the mill would have been devastating for the town, Marie said.

"Because without the mill, Whakatāne would be really lost, we have got tourism, but we need more than tourism."

Jobs are not always easy to come by in Whakatāne either, Marie said.

"I know after they said [the mill] was [closing], you could see jobs that were vacant in out-of-town areas, but they [mill workers] are stable here, they have got their homes, they have got everything here."

Colin who has worked at the mill for almost 27 years, said its closure would have been a huge blow.

"It is not just the mill workers, it is the families and the contractors and it just goes on from there," he said.

"Whakatāne's only a small town, we all know everyone, look after each other."

Colin hoped the mill going into new ownership will mean more opportunities for locals.

"It is good for the young ones that are there just starting out their lives."

It would also keep people in the town, "and the money stays in town".

Hine is a self-described "mill child".

"My dad was employed at both mills, my dad bought our home, he educated us, I went to boarding school.

"I would say that I had a good upbringing, we never suffered hardships in our family and I would not be the person I am today had it not been for my dad working full time at the mill."

Hine said certainty about the mill's future would be a relief for many whānau.

"I think it is going to bring employment back into the community and bring a lot more assurance to families that they have got income coming."

Hine said the double blow of the Whakaari/White Island eruption and Covid-19 has taken a toll.

"But I think that our people are resilient and this is going to bring some positivity back into the community."

Hine said had the mill closed, the consequences don't bear thinking about.

"I tell you who does not close: Work and Income. Is that really where we want to be?"

The mill employs more than 200 staff and about 50 direct contractors.

It will keep producing folding boxboard, carrier board and food service board.