The general manager said it was a ‘very tough day’ for everyone involved
The owners of the Whakatāne Mill have confirmed its closure later this year, sparking job losses for 210 workers.
It’s the area’s largest private employer but has struggled to maintain profitability after losing its biggest customer, parent company SIG Combibloc AG. For the last 80 years, the mill has produced paper and packaging products, mostly for export, but has faced tough competition from lower-cost manufacturers overseas.
Announcing the news yesterday, Whakatāne Mill’s general manager Juha Verajankorva, said it was a “very tough day” for everyone involved.
"We will work to do the best we can by our people and the community of Whakatāne and the Bay of Plenty as we complete our decommissioning and closure of the plant,” he said. "We have explored several options in terms of considering how we might have been able to continue operations, but the economic reality of our position must be faced."
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The majority of staff will be made redundant and will finish their roles in June. A small portion will stay on to decommission the plant before its final closure on June 30.
Raymond Wheeler, E tū spokesperson, said news of the closure was “devastating” for the local industry.
"We’ve just had the economic impact of the Whakaari (White Island) eruption and COVID-19 on Whakatāne’s tourism industry to contend with, and now the region has been dealt this blow,” he told HRD in a statement. “It’s an enormous hit to the regions and to the eastern Bay of Plenty.”
Before the closure, unions had been fighting for the mill to remain open. They were pushing for government investment to repurpose the site but the age of the plant and the area’s high costs had proved a hindrance. The government had tried to help find a new owner, but efforts were unsuccessful.
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FIRST Union secretary for transport, logistics and finance, Jared Abbott, maintained that there are still opportunities to keep the plant running.
"There are many options for refitting the existing assets to continue manufacturing pulp and paper products,” he said. "We are inviting potential buyers to ask for our assistance to get the support needed to make the most of the existing skills and infrastructure available.”
