Thirty staff at Carter Holt Harvey Woodproducts Kawerau Sawmill are losing their jobs.
Their final day of work will be January 10 next year.
In a document leaked to Rotorua's Daily Post, Carter Holt Harvey Woodproducts Kawerau Sawmill site manager Paul Trow stated the job losses were due to asoftening domestic market, increased international competition and an unfavourable exchange rate.
"Carter Holt Harvey Woodproducts is continuing to experience a challenging year in 2010, which is anticipated to continue into 2011," he said.
The document stated 21 full-time and two temporary workers in the mill's drymill department would be made redundant, along with two fulltime forklift drivers and five fulltime sawmill staff.
"Carter Holt Harvey Woodproducts has been exploring new markets offshore with the hope of securing extra volume to support a restart of the third Greenmill shift (raw log processing).
A declining international market and an unfavourable exchange rate have worked against us resulting in these potential new markets not coming to fruition," it said.
The job losses would be made on a "last in, first off" basis.
"It makes economical sense to take capacity out in the drymill and forklift operations. We have also reviewed staff numbers in the greenmill and see the need to make staff cuts across the remaining two shifts," Trow said.
Kawerau Mayor Malcolm Campbell said he had not been briefed by Carter Holt Harvey representatives and did not know the full story behind the redundancies. However, he said any job losses at any time were not good for the town.
"It's not good news for the town or the region as we are trying to build jobs rather than lose them.
"You've got to feel for both sides, but until I have full details I wouldn't like to say anymore," said Campbell.
It is understood up to 15 men offered to take voluntary redundancies but management declined their offer and the 30 staff affected had, within the last six months, been given fulltime positions at the mill.
Trow could not be reached for comment but said in his letter to employees that affected staff would be given four weeks' notice from Monday, December 13 and would finish work on Monday, January 10.
