Juken mill might close: three options being considered

Juken NZ’s Gisborne mill in MacDonald Road, Matawhero. The company’s owners say demand for the mill’s products has declined, and the 29-year-old plant needs significant investment. Picture by Liam Clayton

Scores of jobs are on the line at one of Gisborne’s biggest employers, with forestry giant Juken New Zealand considering closing its Gisborne sawmill after nearly 30 years.

In a statement given to The Gisborne Herald, Juken New Zealand Ltd managing director Hiroyuki Kawado confirmed the company is considering three options for the future of the mill.

“On Wednesday, we advised the workforce at our Gisborne mill that we are currently looking at options for the mill’s future, due to its ongoing financial difficulties and market conditions.

“Our Gisborne mill opened in 1994 and currently employs around 80 people.

“The mill processes radiata pine from our East Coast forests to produce a small range of specialised wood products, mainly for the Japanese housing market. Unfortunately, demand for the mill’s 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.

“In our meeting with employees, we asked them for feedback on three proposed 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 we look for a buyer; closing the mill permanently.

“We asked that any feedback be provided over the next two weeks, before a decision can be made.

“We acknowledged that this will be an upsetting process for employees, and we made confidential external support available to all of them. We also assured them that if production does cease, whether temporarily or permanently, we will in the first instance consider any opportunities for redeployment within our wider business, including at our other sites.

“For the time being, our Gisborne mill will operate as normal throughout the consultation process, with notification of a decision due by November 17.”

Mr Kawado confirmed the proposal did not affect the company’s forestry operations in the East Coast and Wairarapa.

The Japanese-owned company is majority-owned by Japan’s largest wood manufacturer Wood One and was first formed in 1990, just four years before setting up in Gisborne.

FIRST Union organiser Colleen Ryan confirmed the restructuring proposal including three options for the future of the mill had been provided to union members.

“We will be meeting with affected members over the coming week and will provide support and an update in the days following those discussions.”

See also editorial: News from Juken set to reverberate