Northland MP Grant McCallum says local investors could come to the rescue of Kaitāia's beleaguered timber mills.
By Peter de Graaf for rnz.co.nz
Earlier this week, RNZ revealed Japanese owner Juken New Zealand had put the two mills up for sale, and would likely close them down if a buyer couldn't be found.
McCallum said that would be devastating because Juken is a major employer in Kaitāia, with around 200 workers across its Northland and Triboard mills.
Mill owner Juken NZ said the operations that employed about200 people weren’t currently sustainable. (Source: 1News)
However, the MP said he had since spoken to a consortium interested in buying the mills as a going concern.
At this point, he would not say who was behind the potential buyout, but the group included New Zealand and Northland investors.
McCallum said he was devastated when he first heard the mills could shut down – but not entirely surprised because they had been struggling for some time.
"I completely understand the significance of that workforce, 200-odd people, plus all the downstream workers and businesses that would be affected in a town the size of Kaitāia. It would have been potentially disastrous," he said.
"So I'm very hopeful of there being a successful purchase, because I understand the significance."
However, McCallum said he would not celebrate until a deal was "signed and sealed".
Earlier, Juken NZ managing director Hisayuki Tsuboi said the company had started consulting staff about the mills' future.
That was a result of falling demand in key export markets and increasing operating costs, such as power.
Tsuboi said the company was exploring whether the mills could stay open under a different structure, including a potential sale or joint venture.
Far North Mayor Moko Tepania said mill closures had been "devastating" for other rural areas around the country, such as Kawerau and Ruapehu, and called on the government to intervene.
News of the potential Kaitāia mill closures came just days after Heinz Watties announced it was shutting down manufacturing sites in Christchurch, Dunedin and Auckland, as well its frozen packing lines in Hastings.
Other mills to have closed recently include the paper production line at Kinleith Mill in Tokoroa (with the loss of 230 jobs), Eves Valley Sawmill in Tasman (140 jobs), and Karioi Pulpmill and Tangiwai Sawmill in Ruapehu (200 jobs).
Kaitāia has a population of around 6000 people, with about 200 directly employed by the two mills. The only organisation with more employees in the town is Health NZ, which operates a hospital serving the top of the Far North.
SHARE ME