INDEPENDENT NEWS

Jobs to be cut as forestry firm Juken upgrades Kaitaia mill

Published: Tue 11 Sep 2018 10:56 AM
Japanese-owned wood products company Juken is to upgrade its board mill in Kaitaia but also cut the workforce.
Juken says its Kaitaia mill is losing money. Photo: Supplied / Juken New Zealand Ltd
The company says it will invest millions in new technology to modernise and streamline production at the 30-year-old mill over the next few years.
Juken's New Zealand manager Dave Hilliard said it would mean job losses among the 250 employed in the region, although it's not known how many.
Juken cut about 100 jobs at its Gisborne plant at the start of the year as it cut production because of slowdown in the Japanese housing market.
He said the mill was a money loser, with outdated machinery, and production is limited by uncertain supply.
"The mill's machinery and technology is old, despite investment in recent years the site presents health and safety challenges that need to be urgently addressed, and the mill's production is severely constrained by inadequate and uncertain log supply in Northland.
"Because of these issues, the mill is making a substantial loss."
Security of log supply in Northland was having an impact on all mills in the region and was not an issue JNL could fix on its own, Mr Hilliard said.
"We are in early but constructive discussions with the government about the shortage and how it can be solved."
Juken will carry out a two-week consultation period with staff in Kaitaia.
The company has four wood processing mills and employs about 1000 people across its forestry and processing businesses in New Zealand.
RNZ
New Zealand's public broadcaster, providing comprehensive NZ news and current affairs, specialist audio features and documentaries.
Radio New Zealand is a Crown entity established under the Radio New Zealand Act 1995. Radio New Zealand News are vital elements in our programming, providing impartial news and information to New Zealanders every day. Radio New Zealand (RNZ) provides listeners with exciting and independent radio programmes in accordance with the Radio New Zealand Charter.

Next in Comment

Warring Against Encryption: Australia Is Coming For Your Communications
By: Binoy Kampmark
On Fast Track Powers, Media Woes And The Tiktok Ban
By: Gordon Campbell
Censorship Wars: Elon Musk, Safety Commissioners And Violent Content
By: Binoy Kampmark
On The Public Sector Carnage, And Misogyny As Terrorism
By: Gordon Campbell
NATO’s Never-ending War: The 75-Year-Old Bully Is Faltering
By: Ramzy Baroud
Joining AUKUS Not In NZ’s National Interest
By: Eugene Doyle
View as: DESKTOP | MOBILE © Scoop Media