Auckland Mayor Wayne Brown is considering coming to the rescue of Kaitāia's beleaguered timber mills – but in his capacity as a private businessman.
By Peter de Graaf of RNZ
The Japanese company that owns the two mills, Juken NZ, has said it will close them down, with the loss of about 200 jobs, if a buyer cannot be found.
The two-month sale period is due to end this week.
Brown, a two-term former Far North mayor who already has extensive business interests in Kaitāia, told RNZ he was considering buying the Triboard and Northland mills as going concerns.
"I'm chewing it over, would be the best I can say at the moment. Chewing it over."
However, he said it was too early to divulge more, including who he was working with.
Brown has previously developed a number of large commercial properties in the North Park area, next to the mills, and is a landlord to private businesses and government agencies.
He has also developed properties in Mangōnui and Kerikeri, also in the Far North.
During his time as Far North mayor he revived and pushed through a stalled project to build the Te Ahu Centre, which included a library, community hall, cinema, museum and council service centre at the southern end of Kaitāia.
Northland MP Grant McCallum earlier told RNZ he had met a consortium of local and national investors keen to keep the mills operating, but could not say who was involved.
When announcing its plan to exit Kaitāia earlier this year, Juken NZ said the mills had been affected by declining export markets and high costs, especially electricity.
The mills were also major water users, consuming about a third of Kaitāia's town supply.
Juken is planning to keep its Masterton mill, which is newer and makes similar products.
On Wednesday, Workers First Union organiser Marcus Coverdale warned closure of the mills would have a "devastating effect" on the town – not just on the 200 workers and their families, but also on a construction firm that used Triboard to build prefabricated homes, trucking firms, supermarkets, and every other business that relied on workers spending their wages in town.
The union has called a public meeting at Te Ahu from 4.30pm on Saturday.
No quick answer
Meanwhile, the head of Juken NZ said it could be weeks before it was known whether the Kaitāia mills could remain open under new ownership.
Managing director Hisayuki Tsuboi said consultation with employees and unions was due to end on Friday, which was also the last chance for buyers to express interest.
He said no decision about the mills' future had been made at this point.
Tsuboi said the company's priority was to find a pathway to preserve jobs and support the Kaitāia community.
Reviewing staff and union feedback and assessing offers from potential buyers was expected to take several weeks.
"While we're limited in what we can share right now due to the commercial nature of this process, we recognise the uncertainty this creates and we're committed to providing an update as soon as a decision is reached," he said.
In the meantime, both mills would continue to operate as normal, with no immediate changes to production or customer arrangements.
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