Juken New Zealand to Close Kaitāia Timber Mill Following Failed Sale

Juken New Zealand will close its Kaitāia timber mill after a comprehensive international search failed to secure a buyer for the facility. The closure, confirmed by the company on October 24, 2024, follows a period of significant financial strain in the Northland forestry sector. Approximately 130 jobs are expected to be affected by the decision to cease operations at the site.

Why the mill is closing

Juken New Zealand, a subsidiary of the Japanese-based WoodOne Co., cited prolonged market volatility and the inability to find a viable purchaser as the primary drivers for the closure. According to a statement released by the company, the decision follows an extensive, multi-month global search for an investor interested in acquiring the business as a going concern. Despite these efforts, the company stated that no suitable buyer emerged, leaving closure as the only remaining option for the entity.

What is the impact on the local workforce?

The closure marks a significant blow to the local economy in Northland, where the mill has served as a major employer for decades. According to reporting by RNZ, staff were informed of the decision following a consultation process that began earlier in 2024. The company has committed to providing support for affected employees, including redundancy packages and assistance with transitioning to new employment opportunities in the region.

How government involvement is being debated

The closure has sparked a debate regarding the role of government support in regional industry. Regional Development Minister Shane Jones stated that the mill owners did not formally approach the government for financial assistance prior to the closure announcement. As reported by the NZ Herald, this assertion contradicts some local sentiment that the government should have intervened to protect the jobs. The company maintains that the structural challenges facing the timber processing industry were not issues that government subsidies could resolve in the long term.

Key facts regarding the Kaitāia operation

• Company: Juken New Zealand (subsidiary of WoodOne Co.)
• Location: Kaitāia, Northland, New Zealand
• Total Job Losses: Approximately 130 staff
• Reason for Exit: Inability to find a buyer and ongoing market headwinds
• Status: Operations winding down as of late October 2024

What happens next for the site?

Juken New Zealand has indicated that it will now focus on the decommissioning of the Kaitāia site. While the mill itself is closing, the company continues to operate other forestry interests within New Zealand. The closure is part of a broader trend of consolidation in the timber industry, where high energy costs and fluctuating international demand for processed wood products have put pressure on regional manufacturing plants. Local leaders are now calling for a focus on job placement services for the displaced workers, emphasizing the need for regional economic diversification.