Winstone Pulp International Closing Its Pulp Mill and Sawmill in New Zealand

Winstone Pulp International is closing down its two mills — a pulp mill and sawmill — in New Zealand, due to unsustainable power prices. Photo: RNZ / Alexa Cook.

Sept. 11, 2024 - Winstone Pulp International is closing down its two mills — a pulp mill and sawmill — in New Zealand, due to unsustainable power prices, resulting in the loss of 230 jobs.

The Karioi pulp mill produces 220,000 air dried metric ton of high yield Bleached Chemical Thermomechanical Pulp (BCTMP) from 100% Pinus Radiata grown in responsible Forest Stewardship Council-certified forests.

The Tangiwai sawmill produces sawn timber that is sold domestically within the New Zealand market along with being exported throughout Asia.

Winston Pulp chief executive Mike Ryan said the company could not keep operating due to skyrocketing power prices.

Energy costs had increased from $100 in September 2021 to $500 per MWh last month, Ryan said.

"This was not a decision taken lightly. We gave due consideration to the feedback and alternatives put forward by staff and unions but have been unable to identify any viable options that enable the company to continue operations on a sustainable basis," Ryan explained.

According to local news outlets, resources minister Shane Jones has threatened to end the Electricity Authority if it did not work harder to regulate power prices, but the government is yet to intervene on the issue.

A petition was launched last week to save the mill, fearing nearby communities would turn into ghost towns, Radio New Zealand (RNZ) said in a news report.

Public consultation over the proposed closure ended last week, but workers held out hope that the government would intervene after ministers and mill management met several times to discuss unsustainable wholesale power pricing.

But at a meeting on the afternoon of Sept 10, the company confirmed to workers the mills were closing, which a mill worker said came as a shock to everyone.

"Everyone's heart just dropped," said one worker after the Sept. 10 meeting. "We're all trying to figure out what's next — some of us will have to leave the area, and others, well, we just don't know."

Ruapehu District Mayor Weston Kirton called the closure "devastating".

"It's not just about jobs — these are families who've built their lives around these mills. We're talking about a real loss for the community and the regional economy."

About Winstone Pulp International

Winstone Pulp International Limited is a privately owned subsidiary of Oregon Group. The company comprises of two operational sites, Karioi Pulpmill and Tangiwai Sawmill with an office in Takapuna, Auckland.

SOURCES: Radio New Zealand and TVNZ 1 News