OjiFS Proposes to discontinue Paper Production at Kinleith Mill

MEDIA STATEMENT

Oji Fibre Solutions (OjiFS) has today announced it proposes to take further action to stabilise and strengthen the company, by simplifying operations at Kinleith Mill, its largest facility that manufactures pulp and paper.

Chief Executive Officer Dr Jon Ryder says: “After extensive work and considering a variety of options, we are proposing to simplify Kinleith Mill’s operations by focusing on pulp and discontinuing loss-making paper production. Therefore, we are consulting on a plan to permanently shut the Kinleith PM6 paper machine and move to a paper import model for our packaging operations.

“Manufacturing paper has become unprofitable. Paper production at Kinleith Mill has suffered significant losses for several years and we see no prospect of the situation improving.

“Due to the complexities of operational changes required at the mill for this proposal, the exact number of potential job losses is unknown at this stage. However, we anticipate approximately 230 roles may be affected. The wider impacts will become clearer as we work through the consultation period, through to final decision and into next year.

“This proposal takes into account our ability to continue to serve our customers with as little disruption as possible. We propose to continue producing paper at Kinleith Mill through to the end of June 2025, to ensure we meet our packaging customer obligations and provide a smooth transition to new paper supply arrangements.

“Under this proposal, there would be no change to the wastepaper collection service provided by OjiFS Fullcircle, which will continue to collect, sort and bale wastepaper throughout New Zealand for recycling.”

“This is a difficult change to propose because of the impact on our hard-working team. We acknowledge the history and importance of Kinleith Mill in the local community and region and have made every effort to ensure we continue operating at the site.

“Our need for change is in no way a reflection of the experience, skills, and dedication of all the team and leadership at Kinleith Mill.

“We will now enter a consultation period with employees at Kinleith Mill, through to early January, to see if there is an alternative we have not yet considered. We anticipate announcing a decision by end of January 2025.

Media contact:

Wright Communications Senior Account Director, Ellie Martel, 0204 174 7226