\u201cJNL has made an extensive effort to identify a buyer or alternative pathway that would allow the site to continue operating, but this has not resulted in a viable option at this time.\u201d<\/p>\n
The proposal reflects challenging market conditions, including falling demand in key markets, rising costs and insufficient work to keep the mill operating sustainably, he said.<\/p>\n
The Triboard operation is not affected, and efforts are continuing to sell it to someone who would keep the mill operating.<\/p>\n
\u201cNo final decisions have been made,\u201d Tsuchiya said.<\/p>\n
\u201cWe are committed to a thorough consultation process and are seeking feedback from employees and union representatives before determining next steps.<\/p>\n
\u201cWe recognise the impact this will have on employees and their families and are providing access to support services throughout the process.\u201d<\/p>\n
Workers First Union organiser Marcus Coverdale said the announcement was met with shock and disappointment.<\/p>\n
\u201cWe\u2019re disappointed that no buyer has been found for Northland Mill but there is still a window for central Government to step up and push for a solution.<\/p>\n
\u201cNow is the time for a localised solution to save our manufacturing industry and our skilled woodworkers.\u201d<\/p>\n
Meanwhile, JNL\u2019s second mill \u2013 the Triboard Mill \u2013 was not proposed for closure after this morning\u2019s meeting, Coverdale said.<\/p>\n
\u201cIn terms of sustainability, between the two mills, the full log is used,\u201d said Coverdale. <\/p>\n
\u201cThe top of a log is refined for the tri-board product, and the middle for veneers and mulch.<\/p>\n
\u201cWithout a buyer found for the Northland Mill, we\u2019ll be taking the top of the log for tri-board and sending the other raw two-thirds overseas without any value added.\u201d<\/p>\n
The Northland Mill employs about 60 people, including 40 Workers First members who have redundancy provisions and may be able to access redeployment or other options, Coverdale said. <\/p>\n
The proposal window and consultation begins July 8, with a final decision expected by July 16. <\/p>\n
In the meantime, Coverdale said the mill\u2019s collective agreement has expired, and it was unlikely that bargaining for a new one-month term before a closure would commence.<\/p>\n
\u201cI think union members have been frustrated as the company continues to talk about \u2018good faith\u2019 without guaranteeing their future or making any gesture of that nature.<\/p>\n
\u201cBut not all hope is lost, and it\u2019s now time to wait to see if this Government will offer the mill workers a lifeline or if we\u2019re set to lose yet another important wood manufacturing facility.\u201d<\/p>\n
Asked about the mill closure Prime Minister Christopher Luxon said the proposed closure was \u201cincredibly challenging\u201d for affected workers and their families, with government agencies expected to provide support. <\/p>\n
\u201cMSD will be working very closely with those families in those situations on the ground.\u201d<\/p>\n
He blamed the situation on what he described as a failed energy policy that had constrained gas supply to heavy industry, contributing to job losses in regional areas. <\/p>\n
He said the Government was working to address the issues through a \u201cmore sensible\u201d energy strategy, including ensuring \u201cwe\u2019ve got a strategic coal reserve, a strategic diesel reserve, and importantly also creating opportunities for gas either through an LNG import facility, co-investment, gas transition loans, and other things.\u201d <\/p>\n
He added they do not want to see further mill closures. <\/p>\n
\u201cWe\u2019ve got a lot of work to do to make sure that we don\u2019t see our mills shutting down.\u201d<\/p>\n
The potential closure of the Northland Mill adds to a string of wood processing shutdowns across the country in the past year. <\/p>\n","protected":false},"excerpt":{"rendered":"\u201cJNL has made an extensive effort to identify a buyer or alternative pathway that would allow the site…\n","protected":false},"author":2,"featured_media":492507,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[74,138,3239,651,6130,1332,189194,7243,117,111,139,1067,69,3598,1870,24352,61,80],"class_list":["post-492506","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-after","tag-business","tag-buyer","tag-close","tag-failing","tag-fails","tag-juken","tag-mill","tag-new","tag-new-zealand","tag-newzealand","tag-northland","tag-nz","tag-proposing","tag-search","tag-secure","tag-to","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/492506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=492506"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/492506\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/492507"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=492506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=492506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=492506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}