More than 200 jobs to be axed as Kinleith Mill closes paper division

The owner of Tokoroa's Kinleith Mill has confirmed 230 jobs will go from its paper division, which will close at the end of June.

Oji Fibre Solutions chief executive Jon Ryder said there was no feasible alternative that would keep the Waikato plant operating.

Workers and union representatives attended a meeting at the mill this morning to learn their fate, with many expressing shock.

Mill worker Tamehana Coxhead said it was a sad day for his workmates and for the town.

Tamehana Coxhead said his workmates handled the announcement, at a meeting at the mill this morning, as well as they could have.

"You just wanted to reach out and give your colleagues a hug after hearing that information," he said.

"Everyone took it differently, but everyone was respectful to the management after receiving it. I'm incredibly proud of my colleagues for having that approach, hearing information that was quite sad and upsetting."

Coxhead said he had only worked at the mill for three years, but others had been there for much of their working lives.

Steven Reid, 21, who had worked at the mill for just over two years, said he would "keep his head up" and look for other work.

Reid said the job suited him and was helping him make a start in life, but he was philosophical about the closure.

"It's kind of like mixed emotions ... I'm a young guy trying to set up his life with my partner, trying to buy a house," he said.

"The thing about working here is it's good, stable income. The shift work, the flexibility is what I like to do. So, yeah, I just have to find another job, somewhere else, and keep my head up."

Reid said he was determined to stay in Tokoroa to be with his partner, and because he loved hunting in the surrounding bush.

The whole town would feel the effect of the job losses as incomes disappeared, he said.

"Living in New Zealand is so tough as it is now, and with approximately 230 people losing their jobs - not saying, all of them live in Tokoroa, but I'd say at least half of them do - it's gonna take a big impact on our town, like building businesses, plumbers, electricians, even the supermarkets, butchers, all of them."

Reid questioned whether maintenance at the paper plant had been up to scratch in recent years - but he also understood it was hard to keep investing, or even keep it open, if it kept losing money year after year.

He said the unions had worked hard to try to save jobs, by, for example, putting forward counter-proposals to keep the paper line going.

"But yeah, at the end of the day, it's the company's decision."

Reid said his father was also among the workers who were being laid off.

Foregone conclusion - union

E tū senior delegate Ian Farall believes the company decided to close some time ago.

"The writing has been on the wall for some time, and the company never seemed serious about saving paper production," he said.

"They have neglected essential maintenance that could have put us in a much stronger position. Of course, high power prices play a role, but the company should have been far better prepared for this."

He also criticised the government for failing to intervene meaningfully.

Senior FIRST Union delegate at the mill Mario van der Putten said workers were "bitterly disappointed".

"We were the last ones standing - the last paper-making machine in the country.

"This puts our economy at risk and will have a ripple effect on primary industries that rely on our products for the safe, long-term storage of goods.

"We don't believe the company has put forward a genuine business plan. Instead, they have reduced us to a business case. The writing was on the wall after two decades of underinvestment in the mill."

NZCTU president Richard Wagstaff has called on OJI Fibre Solutions to work with the government, unions, and the community before closing the mill.

He said the job losses would be "a devastating blow for the community".

At Friday's meeting the company had indicated it was negotiating with the government about support for its pulp production side.

"It is essential that this investment comes with guarantees from OJI that as much employment is maintained on site as possible," Wagstaff said.

Meanwhile, the Greens are predicting the closure will have a flow-on effect and lead to other local businesses closing down.

Regional Development spokesperson Scott Willis said Foreign Affairs and Trade Minister Winston Peters, Minister of Regional Development Shane Jones and local MP Louise Upston had all made commitments to the community and closing the paper machine would not solve the issue.

"The government can still act and help build a local economy that works for people and planet, instead of one which exhausts and exploits both. Instead of relying on risky overseas companies for investment, we need to start investing in ourselves, a sustainable energy market and future industries."

The community and workers of Tokoroa deserved more than false promises from the likes of Peters, Labour's employment spokesperson Willie Jackson said.

"It's a disgrace that the government can sit idly by and let thousands of people lose their jobs, after promising they would help, and then let this happen," he said.

New mill structure and processes needed - company

Ryder said the company would focus the mill on pulp and stop its loss-making paper production.

"We can confirm, we will permanently shut the PM6 paper machine at Kinleith Mill at the end of June 2025 and move to a paper import model for our packaging operations," Ryder said.

"We expect this decision will result in the loss of around 230 jobs. We will now work with our people on a new mill structure and processes, and the outcome of that work will define role requirements moving forward."

Ryder said the company had considered alternative proposals.

"After extensive work and considering a variety of options and feedback from unions and our team, we see no feasible alternative to our proposal to simplify operations, which will keep Kinleith Mill operating, maintain jobs in the region and continue reliable supply of product to our customers," he said.

"We are grateful to our people for their thoughtful feedback, and for their continued focus on safety and maintaining critical production at Kinleith Mill throughout this unsettling time."

Ryder said the mill would continue producing paper until the end of June, when it closes.

"This provides a period in which options for affected staff can be explored, while ensuring we meet our customer obligations and provide a smooth transition to alternative paper supply arrangements for our packaging operations," he said.

"We know for many of our people and the local and regional community, this is not the news anyone was hoping to hear. We recognise the impact on our people and their loved ones and will be wrapping support around them."

Ryder said the decision to close the paper production was not a reflection of the experience, skills and dedication of all the team and leadership at Kinleith Mill.

"We will now be focused on a transition plan to close the paper machine safely, ensure the welfare of our affected people, and continue sustainable pulp operations at Kinleith Mill. We look forward to working closely with the government as we move through this period and into the future."

Earlier, an E tū union delegate told RNZ that staff had been called to an open-air meeting at 8.30am on the Tokoroa mill's grounds.

In November, Ryder said the company was proposing to simplify Kinleith Mill's operations by focusing on pulp and discontinuing paper production, which he said ran at a loss.

That would mean permanently shutting down the last paper machine, moving to a paper import model for packaging operations, and up to 230 jobs going at the end of June.

Louis Penny was among the workers who attended a meeting at the mill on Friday morning to learn the fate of their jobs.

He said the exact number of jobs going was still being confirmed but it could be more than 200.

Other workers RNZ spoke to were too shocked to talk about the meeting.

The proposed closure came 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 Pulpmill.

Several politicians, including New Zealand First leader Winston Peters, Minister for Social Development Louise Upston, and ex-local Green MP Tamatha Paul, attended a community meeting in Tokoroa in December to discuss what could be done to save Kinleith.

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RNZ reached out to minister Shane Jones' office to see what had been achieved since then, but was told he would not comment until after today's announcement.

Paul grew up in Tokoroa and said Jones and Peters made commitments to the community at the meeting in December and she wanted to make sure those commitments were honoured.

"If we are happy with the outcome then that's excellent. If it's not the outcome we wanted, then I'm going to have to apply more pressure within Parliament," Paul said.

Despite this warning, she was holding out hope for a good announcement.

"I would much rather that there was an outcome that we all really desperately need, more than political point-scoring, so I'm hoping it will be a good announcement."

E tū union negotiator Joe Gallagher said he was also trying to stay optimistic.

"It's going to be either good news or bad news, but I would like to be positive - go there with a positive mindset - that there is a willingness of all parties to extend this process out and look at the best options for the site, for the workforce, and for the community."

He said the union has had good engagement with the owners since the proposal was announced, but that workers were quite nervous as they awaited the final decision.

"We've got younger members... people want certainty about their futures. Some people have 20-25 years left to work," he said.

Gallagher thought Jones and Peters understood the issues involved with closing the paper operations of the mill.

"What we need to see is the whole government falling in behind and looking to see how they can support Shane, New Zealand First, and the workforce, to really open up a pathway for the workforce and community."

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