Rainbow Mountain Green Mill consultation

27 October 2005

Outcome of Rainbow Mountain Green Mill consultation

Following a consultation process with its employees and the union, CHH Woodproducts today announced the Rainbow Mountain Green Mill will close within the next two months.

In July the site removed a shift to reduce production, but additional action has been required in response to further market softening, increased import competition and a strong New Zealand dollar.

The Rainbow Mountain mill uses circular saw technology which has lower conversion rates and therefore higher conversion costs. Given the age of the equipment and the potential upgrade cost, the company believes this is the best decision for CHH Woodproducts as a whole.

The Rainbow Mountain site currently employs 151 employees and contractors, and produces 170,000 cubic metres of sawn timber for the Australian and New Zealand markets. It will continue to employ up to 40 people in secondary processing, dry mill, kiln drying and despatch, operating as an extension of the CHH Woodproducts Kawerau operations.

The 55 people working at the co-located Ramsey Roundwood operation are unaffected by today’s announcement.

ENDS

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