WPI closed Karioi pulp mill, producing 220,000 air dried metric ton of high yield Bleached Chemical Thermo Mechanical Pulp from 100 percent Pinus Radiata and the Tangiwai sawmill, manufacturing sawn timber.
Sep 24, 2024
The rising power prices in New Zealand have allegedly forced a major forest product company to close its entire operations, including a pulp mill and a sawmill at Ruapehu district of New Zealand’s North Island. Winstone Pulp International (WPI), a privately owned subsidiary of Oregon Group, has announced the official closure of operations at the Karioi pulp mill and the Tangiwai sawmill. This move led to the loss of more than 230 jobs in the region.
As per WPI Chief Executive, Mike Ryan, the company gave due consideration to the feedback and alternatives put forward by staff and unions but have been unable to identify any viable options that could enable WPI to continue operations on a sustainable basis.
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He pointed out that energy prices had increased from USD 100 per megawatt hour (MWh) in September 2021 to USD 500 per MWh in August 2024, with power consumption taking up more than 40 percent of the company’s costs.
A number of good ideas were put forward to make incremental improvements in the mill’s operations, but they were not enough to offset the dual impacts of internationally uncompetitive energy prices in New Zealand, and the relatively low current & forecast market prices for pulp and timber, added Mr. Ryan.
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The Karioi pulp mill was producing 220,000 air dried metric ton of high yield Bleached Chemical Thermo Mechanical Pulp (BCTMP) from 100 percent Pinus Radiata. The Tangiwai mill was manufacturing sawn timber, which was being sold domestically within the New Zealand market and also being exported throughout Asia. WPI has been considered one of the largest employers in the Ruapehu district of central North Island.
