Oji Fibre Solutions (OjiFS) announced that it will close its paper recycling mill in Penrose, Auckland with around 75 staff members to lose their jobs. The company said it had no choice after suffering continuing financial losses. Source: Timberbiz
It is expected that the mill will close in December this year.
“This is a sad day for OjiFS and particularly our Penrose Mill employees. While this closure will impact directly on our 75 people at the mill, we will continue serving our customers with as little disruption as possible,” Chief Executive Officer Dr Jon Ryder said.
“Closing Penrose Mill will not change our Fullcircle operations. We will continue to collect wastepaper and continue to recycle around 90,000 tonnes of cardboard per year at our Kinleith Mill, near Tokoroa. OjiFS will remain New Zealand’s largest paper recycler.
The company said that other wastepaper would be sent to an Oji Group mill in Malaysia, who will also supply OjiFS packaging operations across Australasia with a replacement for the recycled medium currently manufactured at Penrose Mill.
“I would like to emphasise that this decision to close Penrose Mill, is in no way a reflection of the calibre, dedication and skill of each and every one of our 75 staff there,” Dr Ryder said.
“Penrose Mill has suffered a three-year pattern of losses, with no prospect of the situation improving.
“As I’ve said before, these losses are caused by several issues, including but not limited to, dramatically rising energy costs, and freight and labour costs. We have looked at technology and other changes to save input costs. We have also considered options presented by our staff and their unions.
“At the end of the day, however, there is nothing we could find that would make a difference.
“We are doing all we can to support our people through this period, including matching them with positions across other parts of OjiFS, and working with other businesses to offer them the opportunity to take on high-calibre, experienced staff.”
