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American Focus > Blog > World News > Hundreds of jobs go in Nth Island mill closures
World News

Hundreds of jobs go in Nth Island mill closures

Last updated: September 10, 2024 5:33 am
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Hundreds of jobs go in Nth Island mill closures
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In a devastating blow to the central North Island community, Winstone Pulp International has announced the closure of two of its mills, resulting in the loss of around 230 jobs. Chief executive Mike Ryan cited high wholesale power prices and low market prices for forestry products as the primary reasons behind the decision.

Despite efforts to explore alternative solutions presented by staff and unions, Ryan explained that the combination of uncompetitive energy prices in New Zealand and the current market conditions made it impossible to sustain operations. While there was a slight decrease in power prices recently, it was not significant enough to offset the overall cost base issues faced by the company.

The closure has sparked concern among local officials and residents, with Ruapehu District Mayor Weston Kirton expressing his worry for the affected individuals and the impact on the community. Winstone had engaged in discussions with energy company Mercury and government representatives in a bid to find a solution, but ultimately, the decision to shut down the mills was inevitable.

Despite the disappointing outcome, Ryan expressed gratitude towards the staff, community, and government for their support throughout the process. He reassured employees that they would receive full redundancy entitlements.

The closure of the mills has raised questions about the competitiveness of New Zealand’s industrial sector, with Resources Minister Shane Jones even threatening to intervene if the Electricity Authority fails to address power pricing issues. However, as of now, the government has not taken any action in response to the situation.

The news of the closures has sent shockwaves through the region, with fears of the impact on nearby communities that heavily rely on Winstone as a major employer. Efforts to save the mills, including a petition launched last week, have unfortunately not been successful.

See also  Mesa County deputy who shared information about detained Utah college student put on leave

As the community comes to terms with the loss of jobs and the closure of the mills, it serves as a stark reminder of the challenges faced by industries in an increasingly competitive global market.

TAGGED:ClosuresHundredsIslandJobsmillNth
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