About 230 workers will lose their jobs at Kinleith Mill in Tokoroa.
Oji Fibre Solutions confirmed the news to workers at an open-air meeting on the mill’s grounds this morning.
“After extensive work and considering a variety of options and feedback from unions and our team, we see no feasible alternative to our proposal to simplify operations which will keep Kinleith Mill operating, maintain jobs in the region and continue reliable supply of product to our customers,” chief executive Dr Jon Ryder said in a statement.
“Therefore, we will proceed with our proposal to transition the mill to a new operating model by focusing on pulp and ceasing loss-making paper production.
“We can confirm we will permanently shut the PM6 paper machine at Kinleith Mill at the end of June 2025 and move to a paper import model for our packaging operations.
“We expect this decision will result in the loss of around 230 jobs.
“We know for many of our people and the local and regional community, this is not the news anyone was hoping to hear.
“We recognise the impact on our people and their loved ones and will be wrapping support around them.
“This difficult decision is in no way a reflection of the experience, skills and dedication of all the team and leadership at Kinleith Mill.”
Ryder said they would now be focused on a transition plan to close the paper machine safely, ensure the welfare of their affected people and continue sustainable pulp operations at the mill.
In November the company announced the proposal to simplify Kinleith Mill’s operations by focusing on pulp and discontinuing paper production, which Ryder said ran at a loss.
A community-led campaign, “Save Our Jobs! Save Our Mill!” was launched to spotlight the cost potential job losses could have on Tokoroa.
The proposed closure came after a year of bad news for New Zealand manufacturing, including another OFS mill closure in Penrose, and the closure of Winstone Pulp International’s Tangiwai Sawmill and Karioi Pulpmill.
Ryder said they would now be focused on a transition plan to close the paper machine safely.
“We plan to continue producing paper at Kinleith Mill through to the end of June 2025. This provides a period in which options for affected staff can be explored; while ensuring we meet our customer obligations and provide a smooth transition to alternative paper supply arrangements for our packaging operations.”
South Waikato District Council Mayor Gary Petley said while the closure was disappointing the district was delivering ambitious growth plans with multiple major new business and housing investments that would help offset the closure of Kinleith’s paper production line.
“It is disappointing the paper production line is closing and we sympathise with those who have lost jobs and contracts.”
Petley said the council had created Project Phoenix to support people who have been made redundant into new jobs and help contractors affected by the mill closure to find new work.
“Through Project Phoenix the council is collaborating with Kinleith owner Oji, government, Ministry of Social Development, community organisations and educational and training institutes and businesses operating in South Waikato to help employees and contractors transition to new employment.”
He said the council saw the closure as an opportunity for government, council and iwi to co-invest and support the district’s transformation while also supporting individuals and families who had been directly affected by the decision.
Petley said it was good news that Oji would keep Kinleith’s pulp production lines open ensuring the continued employment of many employees and he acknowledged the support of Deputy Prime Minister Winston Peters and local MP and Minister of Social Development Louise Upston in discussions with Oji.
E tū union negotiating specialist Joe Gallagher said it had been a “pretty tough” morning.
“People are really angry and upset.”
He said the reactions were “very respectful, very restrained”.
”We are giving people time to process. Possibly 260 people are going to be washed out of Tokoroa because of this decision today.”
Gallagher said an additional 50 to 60 contractors could be “downstream casualties”.
He said he had one key message for the Government and Prime Minister Christopher Luxon: ”You have failed.”
”It’s a disgrace.”
In a statement, E tū senior delegate Ian Farall said he believed the company had made this decision “long ago”.
“The writing has been on the wall for some time, and the company never seemed serious about saving paper production.”
Farall criticised the Government for failing to intervene meaningfully.
“We’re shocked and angry that the Government isn’t stepping in to save the paper mill. It’s a key part of our domestic manufacturing and vital to the wider Tokoroa community.”
Mario van der Putten, senior First Union delegate at the mill, said workers were “bitterly disappointed” by the news.
“We were the last ones standing – the last paper-making machine in the country.
“This puts our economy at risk and will have a ripple effect on primary industries that rely on our products for the safe, long-term storage of goods.
“We don’t believe the company has put forward a genuine business plan. Instead, they have reduced us to a business case. The writing was on the wall after two decades of underinvestment in the mill.
“This could end up being a disastrous decision that sinks the entire business. Specialist skills that take decades to master will be lost in the process,” van der Putten said.
Steven Reid, 21, was born in Tokoroa and had lived there all his life.
His father has worked at the mill for 20 years.
“This will majorly affect the town.”
Reid said he planned to stay in Tokoroa despite any job losses: ”You just got to keep your head up.”
Specialist cleaner Aaron Bell said the unions were going through the questions now.
”The 230 were the Oji workers but that didn’t count contractors.
”I don’t know if I’m safe or not. I might have to work outside of Toke but don’t really want to.”
Bell said he had a wife and three children and had bought a house a couple of years ago.
”I’m okay it’s these younger ones who just bought a house who are in the shit.”
Labour employment spokesman Willie Jackson said the announcement was devastating news for the whole community and the many families who relied on the paper mill for income.
“This is on top of the 33,000 people who have lost their jobs across Aotearoa in the last 12 months under National.
“That’s more than the entire population of Blenheim, without the dignity of meaningful mahi.
“This is not good enough. Winston Peters promised that he would be an ‘advocate on your behalf’ and that ‘Kinleith Mill is the lifeblood of the Waikato’, yet here we are with another large employer closing its doors.
“The community and workers of Tokoroa deserve more than false promises.
“It’s a disgrace that the Government can sit idly by and let thousands of people lose their jobs, after promising they would help, and then let this happen.”
Social Development and Employment Minister and Taupō MP Louise Upston said Friday’s news was “incredibly challenging” for the people affected and “not the outcome anyone was hoping for”.
“I have rung the Chief Executive and reinforced my support for all Kinleith employees, their families and the community affected by this decision,” Upston said.
Upston said she and her team had reached out to the union and the local Ministry of Social Development office.
“We will also be working closely with the council on their Project Phoenix to support affected employees and the community,” Upston said.
“We now need to focus on the future for those affected.”
Upston said the decision announced on Friday was part of the “devastating” fallout from years of high inflation and low growth, coupled with changing demand.
“That’s why as a Government we’re so focused on fixing and growing economy to support industry and create more jobs for Kiwis.”
Maryana Garcia is a Hamilton-based reporter covering breaking news in Waikato. She previously wrote for the Rotorua Daily Post and Bay of Plenty Times.
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