Kaitāia Juken Mills sale: Northland councils seek forestry investors

PwC New Zealand is leading the sales process for JNL's Northland operations. Photo / NZME

A major investment opportunity in Northland’s forestry sector has opened, with councils backing efforts to find a buyer or operator for Kaitāia-based Juken Mills.

Japanese-owned Juken New Zealand (JNL) recently said it was selling and was engaging with employees and unions as part of a consultation process.

A formal search for buyers for Juken’s Northland operations has begun, with expressions of interest open until late May.

The Far North District Council (FNDC), Northland Regional Council (NRC) and Northland Inc are encouraging investor interest in a significant wood processing opportunity in Taitokerau.

PwC New Zealand (PwC) has been engaged by JNL to lead a process seeking expressions of interest from parties interested in acquiring or operating the Northland Mill and Triboard plant in Kaitāia. The process is expected to remain open until late May, after which PwC will work with interested parties to assess potential investment options.

FNDC, NRC and Northland Inc say the facilities represent an established platform for wood processing in Northland, underpinned by a strong and sustainable forestry resource, an experienced workforce, and access to domestic and export markets.

FNDC group manager for planning and policy Roger Ackers says attracting the right investment is critical to maintaining and building on the region’s wood processing capability.

“Forestry remains one of Northland’s key industries, and these operations play an important role in supporting regional productivity and value-added processing.

“This process presents an opportunity for investors to build on existing capability, with the benefit of an established asset base and strong sector fundamentals.”

About 200 staff are employed across the sites, and the council organisations say retaining these jobs and skills is a key priority.

“Our focus is on supporting pathways that retain both employment and capability in the region, while enabling future growth.”

The councils and Northland Inc have signalled they are committed to working constructively with potential investors, where appropriate, to help enable viable proposals and support ongoing operations.

Northland Inc head of investment Tui Rutherford says the region offers a compelling environment for investment in wood processing.

“This is a genuine opportunity for investors to step into an established operation with strong fundamentals.

“Northland has a significant forestry resource, supported by experienced operators and well-established infrastructure. We see real potential to build on what already exists and support future growth in the sector.”

Northland Inc is working with councils, PwC and JNL to ensure potential investors understand the strategic value of the operations within Northland’s wider forestry system.

Northland Inc, Far North District Council and Northland Regional Council say they will continue to support efforts that help retain jobs, maintain processing capability, and position the region for long-term success.

“Our message is clear – Northland is open for business, and we are committed to supporting solutions that keep jobs, skills and investment in the region.”

Interested parties are encouraged to engage with the PwC-led sales process to explore the opportunity further.