The decision will save the company up to $7.5 million a year.
28 more workers will go at Carter Holt’s wood manufacturing plant. The final tally of job losses could run higher as businesses servicing the mill are forced to retrench.
The announcement was made just before Christmas.
Carter Holt Harvey said the mill, which has lost $16 million during the past five years and $7 million this year alone, was outdated.
“We are very disappointed to be making this announcement, particularly at this time of the year,” chief executive Peter Springford said.
“There has been a cloud over the future of Tokoroa Sawmill for a long time now.”
Carter Holt is also showing signs of concern about a possible slump in prices and exports caused by an excess of wood coming from Australia.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter