About 60 employees at a Gisborne mill are set to lose their jobs before Christmas.
Juken New Zealand said in a statement demand for products from the Gisborne mill has “continued to decline” over the past five years and is not expected to improve.
First opening in 1994, the mill had been producing a small range of specialised wood products mainly for the Japanese housing market.
Juken New Zealand managing director Hiroyuki Kawado said the mill's age was also a factor in its closure, with "significant investment" needed to continue its effective production and safe operation.
The decision reportedly followed two weeks of consultation with employees about possible options for the mill's future, which included a temporary closure. Kawado said he informed employees about the "difficult decision" to proceed with the proposal to stop operations and close the mill by the end of March 24, at the latest.
A transition crew of 20 will ensure the mill can remain operational until March 31, 2024, at the latest, Kawado said.
"We are now consulting with affected staff to understand who may be interested in being part of that transition crew and/or redeployment within our wider business."
Kawado said the note of redundancy will be given once they have considered all requests for such roles.
"That is likely to be given Friday."
"This is a difficult time for our people at the mill, and we acknowledge how hard this news may be for them and their whānau.
"Hence, we will have comprehensive support in place to assist them to find new employment including an opportunity to meet with local employers and training providers on-site.
"We are also engaging with local community leaders including the Gisborne Council and Trust Tairāwhiti. The support that has been offered throughout the community is appreciated."
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