Carter Holt Harvey has made a decision to close its Whangārei sawmill in early April following the completion of a consultation process.

The sawmill, in Union East St, employs 111 staff and the company decided to shut down after major upgrades to its Kawerau branch.

CHH chief executive Clayton Harris issued a statement this morning, saying the company has decided to shut its doors having taken into account feedback provided during the consultation process.

Harris said that the Union and employees had been given notice of this and operations would continue until early April with staff finishing progressively over several weeks.

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"The decision has been made reluctantly and we know this will be a stressful and difficult time for everyone involved with the mill. We wish to thank the Union and employees for their participation in the consultation process".

Domestic customers in Northland, he said, were well serviced by its Kawerau and Nelson sawmills.

Harris said the company was reluctant to shut it but the sawmill had been facing log shortages for some time.

The mill pumped about $5 million into the Whangārei economy annually, with much going to companies that supply the mill.