After 45 years of operation, Winstone Pulp International, a major employer in New Zealand's forestry industry, has closed its doors, leaving 230 workers jobless and devastating the rural communities that depended on its two mills. Located in the central North Island, the Karioi Pulp Mill and Tangiwai Sawmill were pillars of the local economy, producing pulp and sawn timber from responsibly sourced Pinus Radiata. However, unsustainable energy costs ultimately forced the company to shut down.
The Closure and Its Impact on Workers and Communities
The closure, officially confirmed on 10 September 2024, marks the end of a long struggle to keep the mills afloat. For months, Winstone Pulp had been negotiating with energy providers and the government, seeking relief from skyrocketing electricity prices that made operations financially unfeasible. The cost of energy surged from $100 per megawatt hour (MWh) in 2021 to $500 per MWh in 2024, a critical factor in the company's downfall.
Winstone Pulp's closure sent shockwaves through the local workforce and economy. Many workers, some of whom had been with the company for decades, expressed disbelief and sadness. "It's heartbreaking. It's part of our identity," said one worker. Families in nearby communities, like Ohakune and Waiouru, now face an uncertain future, with many fearing that the loss of Winstone Pulp will lead to the decline of their towns.
Ruapehu District Mayor Weston Kirton called the closure "devastating," highlighting that the mills were more than just workplaces; they were lifelines for hundreds of families. The loss of these jobs, he noted, could lead to an exodus of workers and their families, leaving behind a potential "ghost town" scenario for the local economy.
Why the Government Didn't Step In
While the New Zealand government expressed concern over the closure, it did not intervene directly, as it had in past industrial crises like the Duval Company case. Energy Minister Simeon Brown acknowledged the high energy prices and their role in the closure but emphasised the broader goal of achieving globally competitive energy pricing for all businesses. Despite public petitions and meetings between Winstone Pulp management and government ministers, no agreement could be reached to lower energy costs for the mills.
Many workers and community members felt let down by the government’s lack of action, arguing that rural industries and communities were being overlooked in favour of urban and corporate interests. Campaign leader Liz Brooker voiced her frustration, stating, "Stop taking from the rural communities. We are as much a backbone of New Zealand as all of those in the offices of the big cities."
Looking Ahead: Uncertain Futures for Workers
As the mills close and the last 18,000 tonnes of logs are processed, workers are left scrambling for options. While some have found new jobs or taken early retirement, many others face a tough road ahead. Some workers are considering moving abroad, particularly to Australia, in search of better job prospects. For those staying behind, the focus is on holding their communities together during this difficult time.
"This was their life," said one worker, reflecting on the deep ties between Winstone Pulp and its employees. As they face an uncertain future, both workers and local leaders hope for new economic opportunities to revive their region.
Source: RNZ, Otago Daily Times, Paperage
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