75 workers face redundancy at Oji Fibre Solutions’ Penrose Mill after confirmation this morning following a consultation period that the Japanese-owned manufacturer intends to cease operations and close the mill by December this year.

FIRST Union and E tū members at the mill say the decision to close signifies another manufacturer deciding to cease operations due to high wholesale energy costs and are warning that Auckland paper recycling will now make a long and emissions-heavy journey to the parent company’s plant in Malaysia and back instead of being processed locally and providing work to New Zealanders.

Today’s news follows confirmation last week that Winstone Pulp International (WPI) will close its two Ruapehu mills and make over 200 workers redundant.

"This is yet another avoidable closure driven largely by high wholesale energy costs and a lack of Government intervention when it matters most," said Justin Wallace, FIRST Union organiser.

"This closure is a terrible outcome for these workers, who are highly skilled in this industry and have roots in their local Penrose community that will now be severely challenged."

"The writing’s been on the wall following a three-year pattern of losses, but this has been hastened by a ‘hands-off’ Government that is allowing us to sleepwalk into a new manufacturing crisis in New Zealand."

Mr Wallace said the unions would support the 75 workers throughout the redundancy process, including assistance with redeployment where possible. He said the unions had provided a submission during the consultation period over the mill’s future and argued that it should remain open.

Joe Gallagher, E tū negotiation specialist, said workers would be having tough conversations today with their families over their future plans and prospects.

"Places like the Penrose Mill are critical pieces of the industrial ecosystem, and this closure is bad for the economy, bad for the region, and it sends a very bad message to other manufacturers who are also struggling with runaway energy prices," said Mr Gallagher.

"When our borders closed during Covid-19, we started to rebuild a resilience in New Zealand industry despite worsening global conditions, but the growth of our domestic economy is now under threat due to this Government’s inaction."

"Politicians have not come to the table with solutions - they’re long on rhetoric and short on delivery."

"This Government has the means and the method to save this mill, but they’ve chosen not to intervene. It’s a great irony that the Prime Minister himself has formerly led a company that has been bailed out by previous governments multiple times."

Maurice Upton, an industrial shift maintenance electrician at the plant who has been employed by the mill for nearly 20 years, said the closure was unexpected and crushing for the 75 workers onsite.

"It’s a feeling of shock, disbelief - the reality is sinking in that the mill is actually closing, and we’re disappointed not just for us and our jobs but for everyone else in the region," said Mr Upton.

"I’m particularly concerned about recycling in New Zealand - we process around 100,000 tonnes of waste cardboard and paper from all across the country, and we don’t know how the country will handle that without our mill in future."

"For experienced workers, there are no comparable roles in the area, and I’ve already heard that colleagues are considering moving overseas to pursue similar roles."

"One colleague has just bought a house and now is being told within weeks that he will be made redundant - he is already considering a move."

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