More than 100 Tokoroa sawmill workers have rallied together to help save their mill from closure.
During the past six weeks sawmill staff, union representatives and a new management team have joined forces to turn the Carter Holt Harvey mill around amid fears it would be closed because of unsatisfactory performanceand profitability.
Tokoroa sawmill senior union delegate Rob Popapa yesterday said everyone at the mill had worked together to improve output.
He was confident the mill would remain open.
"A lot has happened in the last six weeks and new management have told workers they have not come to close down the mill," Mr Popapa said.
"Workers are really pleased with that announcement."
Carter Holt Harvey timber and plywood manufacturing chief executive Maurice Reid said significant progress had been made to improve conversion rates (gaining maximum value from a log) at the Tokoroa mill.
Mr Reid said the level of co-operation to improve performance had been excellent.
"We must maintain this high level of support from employees and the union in order to continue to improve the mill's performance and sustain the improvements made," he said.
"The mill's situation will be closely monitored over the coming months and it is important that we constantly re-evaluate our progress and meet key milestones in terms of performance and profitability along the way."
Mr Popapa said the closure of the mill would be devastating for Tokoroa.
More than 200 jobs, including contractors, would be affected.
"Carter Holt is the biggest employer for Tokoroa and the community would face major problems if those jobs were lost."