Region’s thoughts with Juken workers

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

It seemed inevitable after the announcement three weeks ago about potential closure in the face of ongoing financial difficulties and tough trading conditions, but confirmation yesterday that Juken will close its Gisborne mill after nearly three decades in operation is devastating for its workforce and yet another blow for the region.

That 60 workers will finish up at the mill just three days before Christmas makes it seem even worse, although they are being supported by the company, First Union and others, and hopefully many will have new jobs to start early in the new year.

Some should even be able to stay in the industry here, with Kiwi Lumber saying it is keen to talk to them. Many will have transferable skills that will interest other employers. But no doubt a significant number will end up leaving the region to find employment.

The biggest employer here lately has been the Transport Rebuild East Coast alliance, filling 160 roles as it ramps up work on cyclone-damaged highways and bridges. Hopefully some of the Juken workers will find jobs with TREC or the organisations still looking to replace staff who moved to TREC.

Earlier this month Trust Tairāwhiti, which has invested more than $20m in the former Prime Sawmill site and a Wood Engineering Technology joint-venture plant there — in an effort to boost wood processing, for skilled jobs and to add more value to the trees grown here — confirmed it would not be a potential buyer of the Juken mill.

“It is disappointing that they are having to consider closure. However, we are optimistic that there will be future investment appetite for further wood processing in Tairāwhiti,” said the trust’s acting chief executive.

Back in 2018 when Juken closed its Gisborne plywood line, laying off half its then workforce of 200, some were taken on by Far East Sawmills which was then in the process of restarting the Prime sawmill.

Far East found it tough going at a time when sawmill operators around the country were experiencing difficult trading conditions. It decided to close the mill soon after shutting it down for the first Covid-19 lockdown. Trust Tairāwhiti bought back the mill in a confidential agreement, to retain the workforce, then set about finding a replacement operator.

By late June 2020 Kiwi Lumber, a more experienced operator, was restarting it on a three-month trial basis. Happy with that, it took over the mill and announced plans for $15m of capital investment and building to a permanent workforce of 50 people.

After Juken’s initial announcement, Kiwi Lumber managing director Adam Gresham told The Herald: “We are currently increasing our hours so if their decision is to close then we are keen to talk to their staff about employment at our Gisborne site.”