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Nelson Mayor Nick Smith has called a proposed closure of the Eves Valley Sawmill “an awful decision” for the region, a move that would result in the loss of 142 jobs.
Carter Holt Harvey announced the potential closure of the sawmill to staff at 3pm on Wednesday.
Eves Valley Sawmill,located in Brightwater, near Nelson, is the largest sawmill in the South Island. It was built in the 1980s and produces large volumes of timber framing used for building.
Smith said he had tried to persuade the company to scrap the proposal, which would consolidate their structural timber manufacturing onto one site in Kawerau.
“They closed their Whangārei plant in 2020 with 111 job losses for similar reasons,” Smith said.
The proposal has an 11-day consultation period, which will end on September 1, with a final decision on the future of the facility made on September 4.
Smith said his thoughts were with the staff and their families.
“My immediate concern, shared by Tasman Mayor Tim King, is for the 142 Nelson and Tasman families who will be devastated by today’s announcement, with many staff having worked at the mill for decades,” Smith said.
“It’s coming on top of the series of bad storms and the Covid economic tough times - it makes it the worst winter in decades, for our region.
“I’ve spoken with ministers, and we are going to have to get support from [Ministry of Social Development] for the affected families if this closure proceeds.
“It’s a very significant employer in the region - but the impact’s greater than that because there’s a large number of engineering service companies that also support this massive sawmill.
“So, it’s a body blow for the Nelson-Tasman regional economy - we are going to need to rethink our regional economic strategy.”
Labour MP for West Coast-Tasman Damien O’Connor said hardworking people were at risk of losing their jobs.
“This will be a major blow to the community if it goes ahead,” O’Connor said.
“The Government’s halt on major construction projects is likely to factor in this decision, as demand for processed timber declines, resulting in thousands of job losses and Kiwis having to head overseas for better opportunities.
