Wood processing mill faces closure by mid-March
Nearly 160 jobs in Northland are at risk of disappearing next year amid the potential closure of a wood processing mill in the town of Kaitāia, according to reports.
The Triboard Mill faces an impending closure no later than mid-March 2027 as its owner, Juken New Zealand (JNL), struggles to find a buyer willing to take on the business and all current employees.
The closure is expected to impact 140 employees, as well as an additional 17 jobs that were absorbed by Triboard after the other JNL-owned Northland Mill shuttered in August, Radio New Zealand reported.
Two futures for Triboard Mill
In a statement, JNL executive director Yasufumi Tsuchiya said they have started consultation with employees on two proposals for the future of the Triboard Mill, which has been on the market since March.
The first proposal involves the sale of Triboard's land, building, and other assets to the current prospective buyer.
"If a sale proceeds, the prospective buyer has indicated that it intends to restart Mill operations under new ownership and management," Tsuchiya said.
"The timing of any restart and any future employment opportunities would be matters for the prospective buyer."
The second option involves the closure of the Triboard Mill if the sale does not proceed. Efforts to sell the land and associated assets, however, will continue.
"Under either proposal, JNL would cease operating Triboard Mill no later than mid-March 2027, or potentially earlier depending on operational requirements," Tsuchiya said.
"These proposals reflect the challenges facing Triboard, including weaker demand in key markets, rising costs and not enough work to sustain current operations."
Consultation with employees will remain open until 4 p.m. on 25 November, according to the executive director.
"No decisions have been made, and we will carefully consider the feedback we receive from employees during consultation before the Board determines the way forward," Tsuchiya added.
Impact on workers
Marcus Coverdale, organiser for Workers First Union, told Radio New Zealand that JNL would make an announcement on 1 December.
He said there was a sense of shock among workers when they visited the mill, as they were hoping for an offer that was also going to include the workforce.
"The word around the campfire is the buyer wants a bit of time to get to know the mill operation processes or to have a bit of a clean-out and then consider re-employing people. So they intend to reopen it and employ the local workforce in Kaitāia," Coverdale told the news outlet.
"The problem with that is, and we've seen it in places like Gisborne, if you let the grass grow under people's feet, they go where the grass is greener. So they closed that mill, a buyer purchased it and re-opened it a year later, but by then they couldn't find the experienced staff to run the shifts. And that's the risk you run."
Coverdale added that a lot of people at Triboard have been working there for more than 30 years.
"They could see the writing on the wall - but you still don't want to hear that you're not going to have employment, whether it's on this side of Christmas or the other side," he said.
Coverdale told Stuff that he wants to see government intervention that would include an investment package to help "keep the lights on" and to keep people employed.
The impending closure at Triboard comes as New Zealand's unemployment rate hit 5.7% in the September 2026 quarter. Northland logged the highest unemployment rate at 8.8%.
