She said her thoughts were with those employees and contractors whose jobs were on the line.
"We will be asking questions in the morning and in the coming days."
The loss of a major employer is the latest in a series of blows for the eastern Bay of Plenty town of about 37,500 people, which have seen its tourism sector hit hard by first the Whakaari eruption then Covid-19 border closures.
Verajankorva said the mill business has been in a challenging position for a number of years, and had been exploring options to remain viable, including seeking a new owner, but no other option offered a pathway to continue operations.
He said the mill has struggled to produce Liquid Paper Board for its parent company, SIG Combibloc, at a competitive cost. Despite this, SIG had continued to invest in the company for some time, and had become its major customer, accounting for approximately 80 per cent of its output.
Recently, however, SIG had decided to source the Liquid Paper Board provided by Whakatane Mill from its existing third-party suppliers, meaning the mill's operation was no longer viable, he said. The business case for further investment in the mill by SIG was not economic.
"We continue to explore all options with our advisors Deloitte, including seeking a buyer for the business, but we are in a position where we must put this proposal to staff, as we are reaching a point where there may be no other option," said Mr Verajankorva.
"The volumes we produce are modest by global standards, and our costs-per-unit can no longer compete with bigger plants overseas," he added.
The company's focus in the coming weeks would be to work with staff through the consultation process.
"This is a hard proposal to put forward, given how much a part of the Bay of Plenty community this company has become. Should closure proceed, we will do everything we can to support our people and all our stakeholders," he said.
After considering feedback from staff and all information arising from the consultation process, the company's decision would be shared with stakeholders and the market.