Staff were presented with three options for the mill’s future: ceasing production until new markets and products can be found; putting the mill up for sale and likely ceasing production while looking for a buyer; closing the mill permanently.
“It is with sadness that I have advised them that the decision has been made to stop production as we cannot continue with the ongoing losses being made by the mill and have not identified an alternative solution that will turn the situation around.
“Our Gisborne mill opened in 1994 and has been producing a small range of specialised wood products, mainly for the Japanese housing market. Unfortunately, demand for its products has continued to decline over the past five years and is not expected to improve. The mill’s age also means it needs significant investment if it is to continue its effective production and safe operation.
“While we are still open to having conversations about selling the business, or part of the business, to suitable buyers, this is likely to take a significant amount of time. We have therefore advised the mill’s employees that it is our intention to complete all work in progress by December 22 and then stop production.
“This will directly affect around 60 employees.
“A transition crew of 20 will ensure the mill can remain operational until March 31, 2024, at the latest.
“We are now consulting with affected staff to understand who may be interested in being part of that transition crew and/or redeployment within our wider business. Notice of redundancy will be given once we have considered all requests for such roles. That is likely to be given next Friday.
“This is a difficult time for our people at the mill, and we acknowledge how hard this news may be for them and their whānau. Hence, we will have comprehensive support in place to assist them to find new employment including an opportunity to meet with local employers and training providers on-site. We are also engaging with local community leaders including the Gisborne District Council and Trust Tairāwhiti. The support that has been offered throughout the community is appreciated.”
FIRST Union organiser Colleen Ryan said workers were “absolutely gutted” with the news.
“It’s really sad. They have been under a consultation process for the past few weeks. so they expected this would be the case but they had hoped for the best.
“It’s really tough on them and it’s really tough on our community. They are also concerned for their small community as well.”
However, she had received some “wonderful” phone calls yesterday from several local and national authorities offering to provide help.
Mayor Rehette Stoltz said
her thoughts are with Juken employees and their whānau who’ve lost jobs as a result of the mill’s closure.
“This is very sad news. I acknowledge the difficult time this will be for many families as they hear this news close to Christmas.
“Juken’s processing mill has been a long-standing employer in our region for 30 years. We thank them for their contribution to our region.”
