Jason Kiore, 40, worked alongside his father John Kiore, 66, who had been there 40 years.
Son Frazer Kiore, 17, also worked at the mill.
"It is a sad day, but it is the start of the beginning," Jason said.
A few of the workers had already found jobs, but many were sad to leave, he said.
"It's hitting home, I think a lot of the guys that have worked here for many years, I think it's started to hit them."
John said he was positive about the future.
"Now I can retire, just relax. I'm going to do a bit more fishing, we've been expecting it, actually."
He said the mill had undergone a lot of changes over the 40 years he worked there.
"It will be quite sad not hearing the mill going any more. I started out as a slabber, now I am an edger operator.
"There's been a lot of changes here, a lot of changes with technology."
Frazer said it had been a good experience to work alongside his father and grandfather.
"It has been pretty good. When I first started working here I thought it would be good because it runs in the family.
"I wanted to work with wood as well. I am going to go back and finish my last year of school and see how that goes."
Jason, who had worked at the mill since he was 17, said he had a few prospects and was making his mind up about where to go next. "I want to stay local."
Mamaku farmer Jack Butterworth, involved with the sawmill as an adviser, said: "I know the owners. It is sad, it's sad for everyone.
"It's not going to have much of an effect on the town, despite the hoo-ha. It's a close-knit little community."
The firm's processing site in Ngongotaha, with 20 employees, will continue to operate.
