Oji Fibre Solutions (OjiFS) has officially announced its decision to simplify operations at Kinleith Mill in New Zealand, opting to cease loss-making paper production while maintaining pulp operations.
The decision follows an extensive consultation process with employees and unions, aimed at stabilizing and strengthening the company’s future.
Dr. Jon Ryder, CEO of OjiFS, emphasized the company's commitment to keeping Kinleith Mill operational and maintaining jobs in the region despite the restructuring.
“After extensive work and considering a variety of options and feedback from unions and our team, we see no feasible alternative to our proposal to simplify operations, which will keep Kinleith Mill operating, maintain jobs in the region, and continue reliable supply of product to our customers,” said Ryder.
As part of this transition, the company will permanently shut down the PM6 paper machine at Kinleith Mill by the end of June 2025. This move will shift OjiFS to a paper import model for its packaging operations, allowing the company to focus on pulp production.
The closure of the PM6 paper machine will result in approximately 230 job losses. OjiFS has pledged to provide support to affected employees as they transition out of their roles.
“We recognize the impact on our people and their loved ones and will be wrapping support around them,” Ryder stated. “This difficult decision is in no way a reflection of the experience, skills, and dedication of all the team and leadership at Kinleith Mill.”
The company will now work closely with its employees to define a new mill structure and processes while ensuring a smooth transition for customers and partners.
According to OjiFS, the decision to discontinue paper production at Kinleith Mill will provide several strategic advantages:
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Maintain continuous supply to pulp customers
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Introduce a new supply model for packaging operations
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Improve profitability by eliminating ongoing losses
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Reduce energy consumption and exposure to New Zealand’s energy market fluctuations
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Avoid reliance on costly saw log fibre supply
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Enhance synergies with Tasman Mill through a simplified product configuration
OjiFS plans to continue paper production at Kinleith Mill until the end of June 2025, ensuring customer obligations are met and providing time for affected employees to explore alternative opportunities. The company has expressed its intention to work closely with the New Zealand government throughout this transition period.
Oji Fibre Solutions (OjiFS) is one of Australasia's leading manufacturers of pulp, paper and wood-fibre based packaging solutions.
