Winstone Pulp International has confirmed the closure of its two sites—the Tangiwai Sawmill and Karioi Pulpmill—resulting in the loss of 230 jobs.
The forest products company had previously stated its intention to cease operations due to rising wholesale energy costs. However, Social Development Minister Louise Upston indicated that this was only one factor contributing to the decision.
“It wasn’t felt that we could make a difference in this case… I’m not going to go into the details, but there were multiple factors involved, and short-term Band-Aids aren’t necessarily going to make a difference, and that’s why, unfortunately, the government wasn’t in a position to provide assistance to this business,” Upston said.
She said on top of the skyrocketing energy cost, wood prices were another challenge facing Winstone Pulp.
Upston stated that, due to the significant number of job losses, the Ministry of Social Development has deployed an early response team for the affected individuals. They were exploring job prospects in the Taranaki region and were prepared to provide support for relocation or retraining as necessary.
“Individuals and families will have to make decisions about what is best for their future. And I accept that this is a shock for all of those who are involved.”
Labour leader Chris Hipkins criticised the government for not considering the use of its share of electricity profits as a temporary measure to assist employees affected by the closure of Winstone Pulp International’s mills.
While acknowledging that such a solution would not be sustainable in the long term, Hipkins suggested that the government could have made a one-time investment back into the communities impacted by the closures, which would help them during the transition period as the electricity market undergoes changes.
Regional Development Minister Shane Jones criticised the country’s gentailers following Winstone Pulp’s announcement to shut down, threatening to abolish the Electricity Authority if it did not assert and fully utilise its legislative powers.
Jones warned that more manufacturers would close or relocate if power prices were not controlled.
Meanwhile, Energy Minister Simeon Brown acknowledged the closure as a “sad day” and reiterated the government’s commitment to ensuring competitive energy prices. He mentioned ongoing efforts to stabilise the energy market, including the establishment of a task force by the Electricity Authority and Commerce Commission to address price volatility.
Te Pāti Māori co-leader Debbie Ngarewa-Packer questioned the disparity in government support for different sectors, citing the recent bailout of Ruapehu Alpine Lifts as an example. She raised concerns about why the government could provide financial support to Ruapehu Alpine Lifts but not to another major employer in the region.
Rangitīkei MP Suze Redmayne stated that Winstone’s situation is different from that of Ruapehu Alpine Lifts.
“I don’t think Winstone Pulp wanted a short-term handout. They needed a long-term solution in terms of power supply and pricing. A short-term fix wasn’t really an option,” Redmayne said.
“And the other thing is, as a government, we’ve only got limited funds, so the reality of bailing out just one regional business would set a precedent because there’s so many other businesses that are also facing the same circumstances,” she added.
Ruapehu District Mayor Weston Kirton described the closure as “devastating.”
“It’s not just about jobs—these are families who’ve built their lives around these mills. We’re talking about a real loss for the community and the regional economy.”
