Managing director Hisayuki Tsuboi said ongoing structural and market pressures were affecting operations, including declining demand in key export markets and increasing operating costs. <\/p>\n
\u201cWe have been working over several years to improve financial performance at these sites, including increasing production and exploring new markets. <\/p>\n
\u201cDespite these efforts, we have not been able to return the mills to a sustainable footing under their current operating model.\u201d <\/p>\n
Tsuboi said the company was exploring whether the mills could continue operating under a different structure, including a potential sale or joint venture. <\/p>\n
\u201cWe are taking the mills to market to assess whether there is interest from potential buyers.\u201d <\/p>\n
Juken is one of Kait\u0101ia\u2019s biggest employers, with the two mills employing more than 200 people. <\/p>\n
McCallum said he understood the importance of the mill to the Kait\u0101ia<\/a> community, given the number of people employed there. <\/p>\n \u201cI understand the level of stress and uncertainty this situation is for the current employees and remain hopeful we can reach a successful conclusion.\u201d <\/p>\n Northland Regional Council (NRC) and Far North District Council acknowledged the uncertainty created by the JNL announcement. <\/p>\n Far North Mayor Moko Tepania said the news would be challenging for employees, their wh\u0101nau, and the wider community. <\/p>\n He said councils would be seeking support from central government, \u201cgiven the scale of the potential economic impact\u201d. <\/p>\n \u201cOur priority now is to understand the situation fully and work alongside Juken as they explore options in a very tough economic environment.\u201d <\/p>\n NRC chairman Pita Tipene said the councils and Northland Inc were committed to supporting Juken as it worked through the consultation process. <\/p>\n \u201cWe have already had initial discussions with Juken and will continue to engage closely with them to understand what pathways may exist.\u201d <\/p>\n Juken has been approached for comment about the potential buyer. <\/p>\n The possible mill closures come after Heinz Wattie\u2019s recently announced<\/a> it was shutting down manufacturing sites in Christchurch, Dunedin and Auckland. <\/p>\nNorthland MP Grant McCallum says he has spoken to an investment group interested in buying the timber mills. Photo \/ Tania Whyte<\/p>\n