Forestry company Juken proposes closure of Gisborne mill; 80 jobs at risk

Stacks of Triboard made in Juken's Kaitaia processing factory. Photo / Juken New Zealand Ltd

RNZ

Eighty jobs are on the line as an East Coast forestry company looks to close its Gisborne mill.

Juken NZ is looking at options for the mill’s future due to ongoing financial difficulties and soft market conditions.

The mill, which opened in 1992, processes radiata pine from Juken’s East Coast forests and produces wood products, mainly for the Japanese housing market.

Juken managing director Hiroyuki Kawado said demand for products had continued to decline over the past five years and was not expected to improve.

The mill’s age also meant it needed significant investment if it was to continue to operate safely and effectively.

He said the mill’s 80 staff were told of the issues last week and asked for feedback on three options for its future.

The first option was to cease production until new markets and products could be found. The second was to put the mill up for sale and cease production while a buyer was found.

The final option was to close the mill permanently.

Kawado said for the time being the mill would operate as normal.

The company acknowledged that this would be an upsetting process for employees, and confidential external support was available to them.

“We also assured them that if production does cease, whether temporarily or permanently, we will in the first instance consider any opportunities for redeployment within our wider business, including at our other sites.”

- RNZ