29 Oct 2009
The Blue Mountain Lumber mill near Tapanui, West Otago, is to close as adverse trading conditions have worsened and made it impossible to return it to viability, Winstone Pulp International (WPI) announced yesterday.
In March, WPI radically downsized the site in an attempt to see if it could operate viably, but at a meeting with staff today WPI's Managing Director, David Anderson, said there was regrettably now no option left other than to close.
The mill has historically struggled to be viable, and over recent months trading conditions for it had only got worse, with the dollar rising to new highs and a fall in domestic demand for its product line, Mr Anderson said.
"Having attempted to keep this mill going by downsizing there is unfortunately now no other option left," he said.
"The trading conditions it faces have just made it impossible to continue any longer, even on a much reduced basis."
In March the numbers of staff at the mill were reduced from 110 to 45.
Employees will receive redundancy payments and the company will also help employees get access to supporting government agencies and advisory services.
