OjiFS will continue to collect wastepaper and recycle around 90,000 tonnes of cardboard per year at its Kinleith Mill near Tokoroa.
Sep 25, 2024
Oji Fibre Solutions (OjiFS) has announced plans to close its paper recycling mill in Penrose, Auckland, owing to a three-year pattern of losses, with no prospect of the situation improving in future.
Dr. Jon Ryder, Chief Executive Officer, Oji Fibre Solutions, said, ‘‘This is a sad day for OjiFS and particularly our Penrose Mill employees. While this closure will impact directly on our 75 people at the mill, we will continue serving our customers with as little disruption as possible.
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He adds, ‘‘Penrose Mill will not change our full circle operations. OjiFS will continue to collect wastepaper and recycle around 90,000 tonnes of cardboard per year at its Kinleith Mill, near Tokoroa. OjiFS will remain New Zealand’s largest paper recycler.’’
As per the statement, other waste paper will be sent to an Oji Group mill in Malaysia, which will also supply OjiFS’ packaging operations across Australasia (a subregion of Oceania, comprising Australia, New Zealand and overlapping with Polynesia), with a replacement for the recycled medium currently manufactured at Penrose Mill.
The mill suffered a three-year pattern of losses, with no prospect of the situation improving. These losses were caused by several issues, including but not limited to, dramatically rising energy costs, and freight & labor costs, he added.
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Dr. Ryder further said, “We have looked at technology and other changes to save input costs. We have also considered options presented by our staff and their unions. At the end of the day, however, there is nothing we could find that would make a difference. We are doing all we can to support our people through this period, including matching them with positions across other parts of OjiFS, and working with other businesses to offer them the opportunity to take on high-caliber, experienced staff.”
As per media reports, the mill’s last day would be December 18, 2024.
