Mill future uncertain

By PAULA OLIVER forestry writer

The immediate future of Carter Holt Harvey's Tokoroa sawmill is under a cloud, after the company called a meeting with union staff this week, amid rumours that the mill is to close.

The mill was struck by an industrial dispute last year, when 23 jobs were axed and others adjusted to cope with falling demand for its products. It now employs about 100 staff.

Carter Holt has been hit hard by a massive slump in residential building and construction markets in Australia and New Zealand, which left the company's third-quarter profit result below expectations. It was also forced to mothball a small Australian sawmill in December.

Rumours concerning the future of the Tokoroa mill have gathered pace in recent days, and Engineering, Printing and Manufacturing Union national secretary Andrew Little said they would be discussed when he met Carter Holt representatives tomorrow.

Carter Holt's communications manager Chris Smith said there was nothing unusual about the meeting, and that it was part of ongoing discussions.

"There's no secret that the mill has been facing difficulties for quite a while, and that we have been looking at ways to ensure its profitability, but no decision has been made at this stage," she said. "Those rumours have been around for quite a while."