At the time, chief executive Dr Jon Ryder said the decision would result in the loss of around 230 jobs. Union representatives estimated the number of job losses could be higher.
Upston told the Herald she rang Ryder on the day of the announcement.
“I continue to reinforce my support for all Kinleith employees, their families and the community affected by this decision.”
“We have a meeting scheduled for this Thursday in Tokoroa with MSD, and a council representative.”
Upston said she would be working closely with the council on Project Phoenix, a council-created project to support affected workers into new jobs.
“While we now need to focus on the future for those affected, more broadly there’s no doubt that fallout from years of high inflation and low growth, coupled with changing demand in this particular industry, has been devastating.”
Oji Fibre Solutions (OFS) first announced the proposed closure in November, after a year of bad news for New Zealand manufacturing, including another OFS mill closure in Penrose, and the closure of Winstone Pulp International’s Tangiwai Sawmill and Karioi Pulp.
A community-led campaign, “Save Our Jobs! Save Our Mill!” was launched to spotlight the cost potential job losses could have on Tokoroa.
South Waikato YMCA general manager Julius Daniels said agencies were collaborating in the background to meet the needs of the community.
“Tokoroa is unique, we will bitch and moan about stuff and each other, but at the end of the day, we are a supportive community.
“We all know someone that’s affected and will be doing our best to support our families as we navigate the upcoming months.
“Sadly it might mean people relocating and finding other opportunities elsewhere, but regardless we will all be there to support one another and get each other through this tough time.”
South Waikato YMCA general manager Julius Daniels. Photo / Maryana Garcia
Daniels said people were prepared for the decision but that preparation didn’t take away the shock and disappointment of the announcement.
“A significant job loss such as this doesn’t discriminate, it impacts the whole community.”
Daniels said he was still optimistic that there were other opportunities coming Tokoroa’s way but expressed concerns about the strain the decision put on workers’ mental health.
“We are a resilient community and no doubt will come through the end of it battered and bruised but it will be a turbulent ride.”
South Waikato District Council Mayor Gary Petley said the council created Project Phoenix to support people who have been made redundant into new jobs.
“Through Project Phoenix the council is collaborating with Kinleith owner Oji, government, Ministry of Social Development, community organisations and educational and training institutes and businesses operating in South Waikato to help employees and contractors transition to new employment.”
He said the council saw the closure as an opportunity for government, council and iwi to co-invest and support the district’s transformation while also supporting individuals and families who had been directly affected by the decision.
According to preliminary results, Gary (Puku) Petley is South Waikato's new mayor replacing Jenny Shattock. Photo / Supplied
‘Nothing here is a foregone conclusion’, reviewer says
New Zealand Council of Trade Unions economist Craig Renney was engaged by the E Tū and Workers First unions to review Oji Fibre Solutions’ business case to halt paper production.
“The paper side of the mill had been losing money for some time according to the accounts provided to us,” Renney said.
Renney said his review found increased energy costs and freight costs and a “historic level of underinvestment” were contributing factors.
“[The mill] was spending more and more on maintenance because there hadn’t been significant investment in new plant or equipment on the site.”
Renney said he didn’t know how much capital the company would need to make the paper production side of the mill profitable again.
But “nothing here is a foregone conclusion”, Renney said.
“They are talking about closing the plant in June. There is still time to reach a better outcome.
“What I care about is the workers on the site. Anytime you lose 230 jobs is a bad outcome. That’s a huge loss. It’s important to get this right.”
In Renney’s view, there was an unmet need for pulp product. He said his report to Oji Fibre Solutions pointed out the potential for expansion on the pulp production side of the mill.
Maryana Garcia is a Hamilton-based reporter covering breaking news in Waikato. She previously wrote for the Rotorua Daily Post and Bay of Plenty Times.
