OjiFS Proposes Penrose Mill Closure

Chief Executive Officer Dr Jon Ryder said: “It is well known that Oji Fibre Solutions has suffered large losses recently. Our Penrose mill has suffered a three-year pattern of losses, with no prospect of the situation improving.

“These losses are caused by several issues, including dramatically rising energy costs.

“We’ve looked at different options to improve the mill, including technology to save input costs. Unfortunately, these efforts have not been successful to date.

“Our parent company, Oji Holdings, has a larger, more modern plant in Malaysia that can ensure supply of quality recycled paper for our box-making operations in New Zealand and Australia. Our Fullcircle wastepaper collections would not be affected, and we would remain New Zealand’s largest producer of recycled paper products through our operations at the Kinleith mill. However, closing Penrose Mill would reduce our capacity to produce recycled paper, and increase cleaned wastepaper sent offshore.

“After considering all our options, we are proposing to close the Penrose Mill. We are about to begin a consultation period with our 75 staff at the site, to see if there is any alternative we have not yet considered.

“We understand this is a time of uncertainty for our skilled, dedicated people at Penrose Mill, as well as some suppliers, who may be seriously impacted. We are doing all we can to support these people through this period.”