Winstone Pulp International to Close Amid Rising Energy Costs

Highlights:

• Winstone Pulp International is shutting down its Karioi Pulpmill and Tangiwai Sawmill due to rising electricity costs and poor market conditions.
• Over 250 employees will lose their jobs, severely impacting the Ruapehu District, where WPI is the largest permanent employer.
• The company's decision reflects broader challenges faced by energy-intensive industries dealing with volatile global energy prices and fluctuating timber market demand.

Job Losses Hit Ruapehu District

Winstone Pulp International (WPI), a subsidiary of the Oregon Group, announced its indefinite closure, impacting more than 250 employees at its Karioi Pulpmill and Tangiwai Sawmill in the Ruapehu District. WPI, which specializes in producing sawn timber and high-yield pulp, cited skyrocketing electricity prices and unfavorable market conditions as key reasons behind the shutdown.

Energy Costs Drive Uncertainty

WPI Chief Executive noted that escalating energy costs, particularly for electricity, created uncertainty about future operations. This, combined with relatively low market prices for pulp and timber, left the company unable to maintain profitability. "The volatility in electricity pricing has made it difficult to continue our operations, especially with such slim margins in the current timber market," he explained.

Impact on Local Employment

As Ruapehu District’s largest permanent employer, WPI’s closure will severely affect the local economy. The loss of over 250 jobs marks a significant setback for the region, where employment opportunities are scarce. WPI had been a cornerstone of the community for years, providing stable employment in an area heavily reliant on the forestry and timber industry.

In response to the closure, local government officials are calling for initiatives to support displaced workers and explore new economic opportunities for the district. This move highlights the broader impact of rising energy costs and volatile market conditions on New Zealand’s industrial sector.

WPI’s shutdown serves as a grim reminder of the challenges facing industries reliant on heavy energy consumption, particularly as global energy prices continue to fluctuate.

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