Recently, Winstone Pulp International (WPI) announced the official closure of operations at the Karioi pulp mill and the Tangiwai sawmill in New Zealand after rising energy prices forced an operational pause last month, Whanganui Chronicle reports.
The Karioi pulp mill produces 220,000 air dried metric ton of high yield Bleached Chemical Thermomechanical Pulp (BCTMP) from 100% Pinus Radiata.
The mills provide more than 200 permanent jobs in the district.
“We gave due consideration to the feedback and alternatives put forward by staff and unions but have been unable to identify any viable options that enable the company to continue operations on a sustainable basis,” Chief executive Mike Ryan Ryan said, as quoted by Whanganui Chronicle.
“There were a number of good ideas put forward that would make incremental improvements to our operations, but not enough to offset the dual impacts of internationally uncompetitive energy prices in New Zealand, and the relatively low current and forecast market prices for pulp and timber”, he added.
Winstone Pulp International Limited is a privately owned subsidiary of Oregon Group. The company comprises of two operational sites, Karioi Pulpmill and Tangiwai Sawmill with an office in Takapuna, Auckland.