File photo. Photo: 123rf
A union representing workers at Carter Holt Harvey's Tokoroa plywood manufacturing plant says its closure will be devastating for the town.
The company has begun consultation with staff on closing the plant and importing ply from overseas, with the loss of up to 119 full-time jobs.
The proposed closure follows OJI Fibre Solutions cutting 130 jobs and closing the country's last paper-making machine at nearby Kinleith in June this year.
Red Middlemiss has been a union spokesperson at the ply plant for 23 years. He said Carter Holt Harvey can now make and import plywood from overseas for around 60 percent of what it costs to manufacture it locally.
He thinks the consultation is a box-ticking exercise and the company has probably decided to close.
He said several things have brought the situation to a head.
"A little bit of it is the cost of power, but not all of it. A little bit is cost of primary products, but not all of it. And a little bit is our own reluctance to go and diversify," he said.
Middlemiss said he believes a plan is needed to turn closing factories into sites producing products for the future, such as wood pellets. But that will take investment.
"It's all about money - money, money, money," he said.
Many individuals and organisations, including the Ministry of Social Development, had reached out to him today to see how workers could be supported, he said.
"Even the National Party, bless their souls... I've told everyone we are under consultation at the moment, but I feel it's a fait accompli," he said.
Middlemiss said the consultation process will go for two weeks, and he expects a final decision to be reached fairly soon after that.
South Waikato Mayor Gary Petley told Midday Report he was shocked at the news of more possible job losses in the district.
"This doesn't help us one little bit," he said.
He said the area was built on timber, but the timber industry is now unlikely to have much impact on how the central North Island looks in the future.
Redundancies are set to take effect in November, he said.
RNZ reached out to Carter Holt Harvey who did not provide comment before publication.
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