Oji Fibre Solutions to Shut Paper Production at Kinleith Mill, Cutting 230 Jobs

Highlights:

• Oji Fibre Solutions will shut down paper production at Kinleith Mill, cutting approximately 230 jobs as it shifts focus to pulp production.
• The decision follows the closure of the Penrose paper mill, which resulted in 75 job losses last year.
• The restructuring move reflects changing global demand for paper products, raising concerns about the economic impact on the Tokoroa community.

Major Workforce Reduction as Operations Shift

Oji Fibre Solutions has confirmed it will cease paper production at its Kinleith Mill, leading to the loss of approximately 230 jobs. The Japanese-owned company announced the decision to employees at its Tokoroa site, marking a significant restructuring move. The company initially proposed ending paper manufacturing at the mill last November, opting instead to focus solely on pulp production.

Strategic Shift in Operations

This decision follows Oji's earlier closure of its Penrose paper mill, which resulted in 75 job losses. Chief Executive Jon Ryder stated that the company will permanently shut down the PM6 paper machine at Kinleith, aligning with its strategy to optimize operations amid evolving market conditions. The transition underscores a broader industry trend of moving away from traditional paper manufacturing in response to changing global demand.

Economic and Community Impact

The job cuts will significantly impact the Tokoroa community, where the Kinleith Mill has long been a key employer. Local officials and worker unions have expressed concerns over the economic fallout, urging support measures for affected employees. At the time of writing, Oji Fibre Solutions has not disclosed specific plans for severance packages or retraining programs.

Industry Outlook

The move highlights the challenges faced by the paper industry in New Zealand and globally, with rising costs and declining demand for paper products pushing companies toward alternative business models. As Oji Fibre Solutions shifts its focus to pulp production, industry analysts anticipate further restructuring efforts across the sector.

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