Kinleith Mill in Tokoroa is set to close paper production, and approximately 230 employees will lose their jobs. Kinleith Mill owner Oji Fibre Solutions announced during an open-air meeting today.
“We see no feasible alternative to our proposal to simplify operations, which will keep Kinleith Mill operating, maintain jobs in the region, and continue reliable supply of product to our customers,” chief executive Dr. Jon Ryder said.
“Therefore, we will proceed with our proposal to transition the mill to a new operating model by focusing on pulp and ceasing loss-making paper production.”
Last year, Oji Fibre Solutions announced plans to ‘simplify operations’ at Kinleith Mill by concentrating on pulp production and discontinuing paper manufacturing. According to Ryder, “Paper production at Kinleith Mill has suffered significant losses for several years, and we see no prospect of the situation improving.”
In today’s meeting, Ryder confirmed that the PM6 paper machine will be permanently closed by the end of June 2025, with plans to transition to a model that relies on imported paper for packaging operations.
“We expect this decision will result in the loss of around 230 jobs,” he added.
Ryder also stated that the company will now concentrate on a transition plan to safely shut down the paper machine, prioritising the well-being of affected employees, and maintaining sustainable pulp operations at the mill.
South Waikato District Council Mayor Gary Petley expressed disappointment over the closure of Kinleith’s paper production line. However, he emphasised that the district is pursuing ambitious growth initiatives, including several new business and housing investments, which are expected to help reduce the impact of the closure.