Kinleith Mill Job Cuts: 230 Workers Face Uncertain Future as Oji Fibre Solutions Proposes Shutdown
Oji Fibre Solutions plans to shut down paper production at the Kinleith Mill in Tokoroa, affecting about 230 of its 450 workers. The mill’s current operations will continue until June 2025 to meet customer obligations. Oji CEO Jon Ryder cited significant losses in paper production over recent years and no expected improvements.
Workers were informed of the changes in a meeting this morning. This announcement follows Oji’s earlier decision to close its Auckland mill, which will cease operations shortly before Christmas.
The company will consult with employees until early January 2024 and will announce a final decision by the end of that month. Ryder acknowledged the impact on employees and the mill’s importance to the local community. Union representatives will support the affected workers during this process.
Interview with Jon Ryder, CEO of Oji Fibre Solutions, on the Kinleith Mill Closure
NewsDirectory3.com: Thank you for joining us today, Jon. Oji Fibre Solutions recently announced the planned shutdown of paper production at the Kinleith Mill in Tokoroa. Can you explain the rationale behind this decision?
Jon Ryder: Thank you for having me. The decision to close the Kinleith Mill, which has been operational since 1953, was not made lightly. Over the last several years, we’ve seen significant losses in our paper production sector. Despite our efforts, we do not see any realistic prospects for improvement. This closure will allow us to reallocate resources more effectively within the company.
NewsDirectory3.com: How will this closure impact the employees at the Kinleith Mill?
Jon Ryder: This is undoubtedly a difficult time for our employees. Of the 450 staff members at the mill, about 230 are directly affected by this decision. We are committed to working closely with our employees throughout this process. We’ve already begun consultations, which will continue until early January 2024, and we aim to reach a final decision by the end of that month.
NewsDirectory3.com: What plans are in place to support the affected workers?
Jon Ryder: We acknowledge the significant impact this closure will have on our team and the local community. We are collaborating with union representatives to ensure that affected workers receive the support they need during this transition. This includes providing assistance in finding new employment opportunities and exploring potential retraining programs.
NewsDirectory3.com: The closure follows a similar decision regarding the Auckland mill. Is this indicative of a larger trend within the paper production sector?
Jon Ryder: Yes, the closure of the Auckland mill, which will cease operations shortly before Christmas, highlights a broader trend we are witnessing in the manufacturing sector. This year has seen numerous job losses across various industries, and unfortunately, the paper production sector is not immune to these challenges. We must adapt to changing market demands and position ourselves for future success.
NewsDirectory3.com: Looking ahead, how do you see Oji Fibre Solutions evolving in response to these challenges?
Jon Ryder: Our focus will be on diversifying our operations and investing in areas with greater growth potential. While the closure of the Kinleith Mill is a significant change, we are committed to maintaining a sustainable business that can thrive, which might involve exploring new technologies and products that align with market demands.
NewsDirectory3.com: Thank you for your insights, Jon. Is there anything else you would like to convey to the community and employees during this challenging time?
Jon Ryder: I want to thank our employees for their hard work and dedication over the years. The Kinleith Mill has been an integral part of the Tokoroa community, and we truly appreciate the contributions of our workforce. As we move forward, we remain committed to communication and support during this transition period.
NewsDirectory3.com: Thank you for your time, Jon, and for providing clarity on this important issue.
Kinleith Mill has operated in Tokoroa since 1953. The proposed closure is part of a larger trend in the manufacturing sector, with many job losses reported this year.