Nelson Pine Industries Ltd said 60 jobs are to go from its 265-strong workforce.
In passing on the news to staff today managing director Murray Sturgeon said it was a black day and the company cared deeply about its people.
The redundancies result from difficult market conditions and come after
Sealord signalled 180 redundancies in Nelson this week.
Nelson Pine Industries is wholly owned by Japan's Sumitomo Forestry. It is a world leader in the manufacture of medium density fibreboard (MDF) and laminated veneer lumber (LVL).
"My company is internationally competitive, we just have not enough demand from our markets to occupy the full capacity of our plant," Mr Sturgeon said.
One of the company's three MDF production lines will be closed.
The company was in a sound financial position and was not closing the plant to save wages, he said.
A lot of the company's MDF is sold into China where it is made into furniture, which is onsold to North America where house building has plunged.
The company would build up inventory if it continued to operate its Richmond site 24 hours.
The company will continue the growth path that has led to it being one of the largest engineered wood products producers in the world, he said.
Nelson Pine has been producing MDF since 1986 and in 2002 commissioned a LVL plant at its Richmond site.
- NZPA
