Kinleith Mill to cut 230 jobs as it discontinues paper production: reports

Kinleith Mill in Tokoroa town is expected to lay off more than 200 employees as it discontinues paper production next year, according to reports.

Oji Fibre Solutions, operator of the mill, said it is anticipating job losses of around 230 roles amid consultations to permanently shutter its Kinleith PM6 paper machine.

Jon Ryder, chief executive of Oji Fibre Solutions, attributed the move to paper manufacturing being no longer profitable.

"Paper production at Kinleith Mill has suffered significant losses for several years and we see no prospect of the situation improving," Ryder said, as quoted by Radio New Zealand.

According to the RNZ report, the plan to discontinue paper production is set at the end of June 2025. Workers were called to a meeting on Wednesday about the plan.

Workers 'angry' over job losses

"There were a lot of angry people in the meeting this morning. People were speaking from the heart, about how disappointed they are," said Ian Farall, head delegate of union members, in a statement.

"Union members had a near-unanimous vote of no-confidence in the management, to show how frustrated we are. Many chose to simply walk out."

Joe Gallagher, E tū Negotiation Specialist, also slammed the company's decision and called for a longer consultation period.

"We don't believe the company has done everything they can to avoid this outcome," Gallagher said. "It's a hell of a thing to tell people with Christmas just around the corner, and we need a longer period of consultation to really understand the potential alternatives to stopping paper production completely."

Government support requested

Meanwhile, the New Zealand Council of Trade Unions (NZCTU) sought more assistance from the government for the workers and the manufacturing industry.

"Workers also deserve active support when they lose their jobs, not just sympathy. That's why for years we have been calling on successive governments to adopt a social insurance scheme that would protect workers through redundancy," said NZCTU Te Kauae Kaimahi President Richard Wagstaff in a statement.

According to Wagstaff, Kinleith's plan to halt paper production is "another major blow to regional manufacturing" in New Zealand.

"Over the last several months we have seen significant job losses in the regional manufacturing sector, with worksites closing around the country," he said. "The government's failure to step in and protect these communities demonstrates their lack of concern for regional New Zealand and the care for workers and their whānau."

Wagstaff said subsidising and giving handouts to particular companies will not be enough demonstration of support to the industry.

"It's about putting forward an economic and industrial strategy that supports industries and regions to protect and generate good jobs and create full employment for working people," he added.