November 19, 2024 (press release) –
Oji Fibre Solutions (OjiFS) has today announced it proposes to take further action to stabilise and strengthen the company, by simplifying operations at Kinleith Mill, its largest facility, manufacturing pulp and paper.
Chief Executive Officer Dr Jon Ryder says: “Manufacturing paper has become unprofitable. Therefore, we are consulting on a plan to permanently close the Kinleith PM6 paper machine and focus our Kinleith Mill on producing pulp only.
“This proposal takes into account our ability to continue to serve our customers with as little disruption as possible.
“We understand the importance of maintaining reliable supply of quality products for our customers, and plan to more efficiently produce pulp products across both our Kinleith and Tasman Mills.
“Kinleith Mill would focus solely on producing Bleached Softwood Radiata Kraft Pulp (BSKP), with potential for incremental production volume increases.
“Tasman Mill would continue to produce Fibre Cement Pulp (FCP) and Unbleached Kraft Pulp (UKP).
“OjiFS packaging operations would move to a paper import model.
“The PM6 paper machine at Kinleith Mill has a capacity to produce 325kt per annum of virgin and recycled containerboard paper grades. Paper production would continue through to the end of June 2025, to ensure we meet our packaging customer obligations and provide a smooth transition to new paper supply arrangements.
“There would be no change to the wastepaper collection service provided by OjiFS Fullcircle, which would continue to collect, sort and bale wastepaper throughout New Zealand for recycling.”
It is anticipated this change proposal would affect approximately 230 roles. Dr Ryder says: “A key priority moving forward will be supporting our valued employees and their families throughout this difficult time.
An announcement of the final decision on the proposal is planned for the end of January 2025, following the consultation process with our effected employees.
Media contact:
Wright Communications Senior Account Director, Ellie Martel, 0204 174 7226
Please note: Dr Ryder is not available for interviews. 2
Background Information
Who is Oji Fibre Solutions?
Oji Fibre Solutions (OjiFS) is a pulp, paper and packaging company owned by Oji Holdings Corporation. Most of Oji Fibre Solutions’ operations are based in New Zealand. It employs over 1840 people in New Zealand and Australia.
Market pulp and containerboard products are produced in the Central North Island of New Zealand and at a recycling mill in Auckland. There are also nine packaging operations in New Zealand and Australia that produce a range of wood-fibre based packaging solutions, principally for the horticulture, dairy, meat and beverage industries.
The business includes Fullcircle, New Zealand’s largest waste-paper recovery and recycling service.
Market pulps and containerboard are exported to more than 30 international markets, while most of the packaging products are sold to domestic customers in Australia and New Zealand.
Oji Holdings Corporation, based in Japan, is one of the largest companies in the global forest, paper and packaging sector. Its operation in New Zealand includes Pan Pac, based in Hawkes Bay and Southland Plantation Forest Company of New Zealand, as well as Oji Fibre Solutions.
For more information go to www.ojifs.com
Media contact:
Wright Communications Senior Account Director, Ellie Martel, 0204 174 7226
Please note: Dr Ryder is not available for interviews.
Please see CEO and Kinleith Mill imagery attached.
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