Kinleith Mill proposes halt to paper production in 2025

Oji Fibre Solutions is proposing to halt paper production at Kinleith Mill from June 2025.

More than 200 jobs are at risk as New Zealand’s largest paper mill proposes halting production after June 2025.

The proposal, presented to Kinleith Mill workers at a meeting this morning, said the mill’s owner Oji Fibre Solutions aimed to “simplify operations” by focusing on pulp and discontinuing paper production.

While the company said the exact number of job losses was still unknown, the proposal could affect 230 roles.

Kinleith Mill workers are members of the labour unions E tū, First Union and Awunz.

In a statement from E tū, head delegate Ian Farall said there were “a lot of angry people” at this morning’s meeting.

“People were speaking from the heart, about how disappointed they are,” Farall said.

“Union members had a near-unanimous vote of no-confidence in the management, to show how frustrated we are. Many chose to simply walk out.”

Farall said it was not just the directly impacted workers who were angry.

“We’re in unity here, and we know the downstream effects will harm the whole community. It’s the truck drivers, the local cafes and other businesses.

“Many people locally rely on the mill as the heartbeat of south Waikato.”

More than 200 jobs are at risk as New Zealand’s largest paper mill proposes halting production after June 2025. Photo / Nicola Topping

Farall said staff were disappointed by the company’s inability to turn things around.

“They can’t control what the market does, but they could have been much better prepared for this point in the cycle.

“There have been many problems at the mill, they have not kept up with maintenance, and they have not made the right investments to secure a future for paper production.”

South Waikato Mayor Gary Petley said his heart went out to those impacted and their families.

“I want to assure people that the council is working with all the relevant stakeholders in the community to see how they can mitigate the impact,” Petley said in a video statement.

“I will continue to advocate on your behalf to central government to get some reassurances that when situations happen like this the support is there for those that need it.”

Rotorua Mayor Tania Tapsell said a closure would have a massive impact on local workers and the many people who travelled from surrounding towns.

“This paper machine was the sixth and last paper machine in existence at Kinleith,” Tapsell said.

“My father Terry had worked there during various construction phases so I can appreciate how sad this news is for many.”

Tapsell said the operation of the paper machine also created work for many suppliers and contractors for the mill, including during routine maintenance shutdowns.

“It’s good that the two pulp mills at Kinleith will carry on and we hope that certainty can be provided as soon as possible to everyone impacted by closures.”

Rotorua Mayor Tania Tapsell. Photo / Laura Smith

E tū negotiation specialist Joe Gallagher called on the company to do better by its workers after meeting with members and management today.

“They can’t just hang the workers out to dry,” Gallagher said.

“We don’t believe the company has done everything they can to avoid this outcome.

“It’s a hell of a thing to tell people with Christmas just around the corner, and we need a longer period of consultation to really understand the potential alternatives to stopping paper production completely.”

Gallagher said the Government must also step up to support domestic manufacturing.

“We will not become a high-skill, high-wage economy while our political leadership continues with such a hands-off approach to our industries.

“Kinleith is not the first plant to be in this position recently and it may not be the last.

“Now’s the time for both businesses and the Government to get real about the crisis before us and work to reverse it. That’s the leadership communities like Tokoroa deserve.”

Social Development and Employment Minister and Taupō MP Louise Upston said she felt for the workers and their families.

“This will be an incredibly difficult time for them.”

Upston said the Ministry of Social Development was aware of the situation and would work closely with those affected to provide employment support.

“Businesses in Taupō, Tokoroa and many other parts of the country are clearly feeling the effects of several years of low economic growth and recession, which is why the Government is so focused on rebuilding the economy,” Upston said.

“This blow to our region only steels my resolve to push ahead with our Government’s recovery plan to get the economy back on track.”

Oji Fibre Solutions chief executive officer Dr Jon Ryder. Photo / Supplied

In a statement, Oji Fibre Solutions chief executive officer Dr Jon Ryder said manufacturing paper had become “unprofitable”.

“Paper production at Kinleith Mill has suffered significant losses for several years and we see no prospect of the situation improving.”

Ryder said the company’s proposal was to “simplify operations” at the mill by focusing on pulp and “discontinuing lossmaking paper production”.

“We are consulting on a plan to permanently shut the Kinleith PM6 paper machine and move to a paper import model for our packaging operations.”

Ryder said the exact number of potential job losses was “unknown at this stage”.

“However, we anticipate approximately 230 roles may be affected,” Ryder said.

“The wider impacts will become clearer as we work through the consultation period, through to a final decision and into next year.”

Ryder said according to the current proposal, Kinleith Mill would continue paper production until the end of June 2025.

“This is a difficult change to propose because of the impact on our hard-working team,” Ryder said.

“We acknowledge the history and importance of Kinleith Mill in the local community and region and have made every effort to ensure we continue operating at the site.”

Ryder said the company would now enter into a consultation period with employees at the mill. The consultation period would end in early January.

“We anticipate announcing a decision by the end of January.”

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.