Clutha District mayor Bryan Cadogan says the closure of a South Otago sawmill will have a big impact on the local economy.
Southern Cross Forest Products went into receivership seven weeks ago. The company is closing its Rosebank sawmill in Balclutha and laying off 79 people from its sites throughout Otago.
Mr Cadogan said the mill has been a long-standing employer in the region. He said his heart goes out to the affected workers and their families, and he is contacting government agencies to try and gather resources to help them.
Receiver Korda Mentha says it will continue to keep the company trading and will try to protect the remaining jobs while looking for a buyer.
Southern Cross Forest Products has 400 staff at six sites in Otago and Thames.
