Workers 'gutted' as 112 lose jobs

ONE hundred and twelve workers are jobless and "gutted" by the announcement Rotorua wood products manufacturer PanaHome has closed.

The Rotorua premises, Machinery and equipment have all been sold to Rotorua businessman Mark Clayton, the owner of another Rotorua timber manufacturer, Claymark Industries. But the deal did not involve keeping the plant running - and now all operations at the Allen Mills Rd site have ceased. The Rotorua PanaHome staff were joined by another 177 workers nationwide who have found out they were starting the new year jobless.

PanaHome staff were told of the closure at 12pm yesterday.

The announcement was met with a mixture of outrage and resignation, according to one employee.

"A lot of people are gutted ... there was a big meeting before Christmas where the shirt and collar people told us the company would be sold as a going concern," said the man, who did not wish to be identified.

"When we heard about the meeting [yesterday] we were hoping to hear a bit of news about how it was all going. Well, we got a bit of news alright."

He said many of the staff believed the company had not done enough work in finding fresh markets for its products.

The company had originally sought to sell the business as a going concern.

However, Kerryn Downey, the managing partner of McGrath Nicol, said the closure was a reflection that the original objectives for establishing the plant in New Zealand to supply PanaHome Japan had now been satisfied and new markets could not be established quickly enough.

McGrath Nicol acts as adviser to PanaHome NZ and its parent company in Japan.

"We were seeking a buyer that would keep the plant going. But in present trading conditions that was not possible," he said.

All employee entitlements, including wages, redundancy, sick leave and holiday pay accrued had been paid in full, Mr Downey said.

Former employee Larnice Moengaroa, said many had been shocked by the news, however she had been wary of such an announcement and would be working hard to find new employment.

"I do feel sorry for a lot of the older guys who have been there for years. They will have a tough time finding new jobs."

Established in 1992, PanaHome employed a total of 130 people.

PanaHome director Neil Hammersley declined to make any comment to the Daily Post.

When the Daily Post visited the site yesterday afternoon the majority of the workers had already gone home.

Clayton Holdings spokesman Dean Camplin said the closure of the Panahome plant "provided an opportunity to purchase property and plant that fits with Clayton's existing operations."

PanaHome NZ is a subsidiary of the PanaHome Corporation of Osaka.

The sale is subject to approval by the Japan board of directors and will be confirmed on January 31.

Forty staff were laid off from PanaHome in March 2004. At that time the redundancies were blamed on a drop in orders from PanaHome's parent company, which had been caused in part by the strong New Zealand dollar, making radiata timber from Canada, China and Scandanavia considerably cheaper; and in part by wood being increasingly replaced by steel products in Japanese construction. National Distribution Union wood sector secretary Jim Jones said the closure was a tragedy for Rotorua.

"We will be having a close look to see whether all the options had been looked at [by PanaHome management]. Their situation is symptomatic of the national situation ... there's no job security anywhere."