A wood processing mill in Kaitaia has confirmed it will cease operations by mid-March 2027 as options for closure or sale are mulled.
Juken New Zealand (JNL) said it has put two proposals with its workers, including the sale of Triboard Mill's land, buildings and other assets to the current prospective buyer; or, if that sale does not proceed, the closure of Triboard Mill and continued efforts to sell the land and associated assets.
"Under either proposal, JNL would cease operating Triboard Mill no later than mid-March 2027, or potentially earlier depending on operational requirements," said chief executive Yasufumi Tsuchiya in a statement.
In March, the Japanese-owned company announced a formal consultation process over the future of its Northland Mill following weaker demand in key markets, rising costs and not enough work to sustain current operations.
Mill owner Juken NZ said the operations that employed about200 people weren’t currently sustainable. (Source: 1News)
The company had two working mills in Kaitāia and Wairarapa making wood products for local and export markets, with about 340 manufacturing employees combined.
"Despite considerable efforts, JNL has not been able to identify a buyer willing to take on the business and all current employees, or another viable arrangement that would support long-term profitability.
"However, JNL is in negotiations with a prospective buyer for Triboard’s land, buildings and other assets. No binding sale agreement has been reached," said Tsuchiya.
"If a sale proceeds, the prospective buyer has indicated that it intends to restart Mill operations under new ownership and management. The timing of any restart and any future employment opportunities would be matters for the prospective buyer."
"No decisions have been made, and we will carefully consider the feedback we receive from employees during consultation before the Board determines the way forward."
Consultation with employees would remain open until 4pm on November 25, 2026.
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