Carter Holt Harvey’s planned closure of Eves Valley Sawmill would have a huge impact on the region, Tasman’s mayor says.
The facility, 21km out of Nelson, was built in the 1980s.
Company management told Tasman Mayor Tim King on Thursday it planned to shut the plant near Nelson and consolidate resources at its Kawerau plant in Bay of Plenty, with the potential loss of 142 jobs.
“There have been rumours around the future of this mill for some considerable time, but it still comes as a huge shock when you actually hear that it’s intended to close. The implications are very significant for us as a region,” he said.
King, who lived next door to the mill, said it had been a major part of the region’s economy for the last 40 years and his thoughts were with the 140 staff affected.
“I’ve grown up with this site, I lived here before the mill was built, I watched it being built, I’ve lived next to it for most of my life. I can certainly understand how difficult it is for those people who have worked here, many of them have worked here for a very long time as well.”
King said there had been a lot of rationalisation in the sawmill industry around the country.
“When you read the rationale behind the closure of this mill, it follows a bit of a pattern, significant investment in technology and efficiency in other parts of the country and the decision by Carter Holt that they can supply all the sawn timber needs from the North Island for the country as a whole,” he said.
Impact on nearby towns
If the closure went ahead, King said it would have a huge effect on the neighbouring towns of Brightwater, Wakefield and Richmond, with employees looking for work and wages no longer supporting other businesses.
He understood that around 250,000 tonnes of timber were processed at the site each year, with most trucked directly from adjacent forestry, which would now have to be sent elsewhere.
“The associated business and industries that support this site, the forestry industry as a whole, this has been a key market for logs from the large forestry estate that surrounds the Tasman region.”
While it was still a proposal, King said he understood the reasons for the closure and it seemed unlikely anything could be done to change Carter Holt Harvey’s decision.
Nelson mayor not optimistic
Nelson Mayor Nick Smith said Carter Holt Harvey wanted to shut it to consolidate its resources at its Kawerau plant in Bay of Plenty.
He told RNZ that the plan was under consultation until September 1 but, following a meeting with the company’s management, he was not optimistic that anything could be changed.
“I put to them was there anything that council or government could do that would save the local jobs and they made plain, not really.
“It was really that consolidation of their timber manufacturing business in New Zealand that was driving the closure of the Nelson plant so disappointingly.”
Regional Development Minister Shane Jones and South Island Minister James Meager were briefed on the matter by Smith, he said.
“They were obviously disappointed but also were supportive of ensuring government agencies like [Ministry of Social Development] are there and available to provide the support for the very significant number of workers and families that will be affected if this closure proceeds.”
Meager told RNZ he hoped other companies might be interested in processing trees that toppled in the region’s flood emergencies at the plant.
“It’s come at a really bad time for Nelson-Tasman because there’s a lot of windfall timber there that needs to be processed. I understand probably around about 3500 hectares, possibly 6000 hectares of timber, that needs to be processed and pulled off the land.”
Meager did not believe the decision was a vote of no confidence in the mainland.
“Ultimately, if they’re consolidating, they’re going to need to make a decision about a site somewhere and for them they make their decisions based on what works best for them,” he said.
“I’m sure it has nothing to do with Nelson-Tasman. We’ve seen a lot of positive signs of growth in the South Island over the last six months, the fastest-growing regions are all down the south.”
He planned to discuss potential regional development options for the Nelson-Tasman region with Jones.
RNZ has approached Jones for comment.
Labour list MP Damien O’Connor, who formerly held the West Coast-Tasman seat, said a mill closure would be a major blow to the region.
“The Government’s halt on major construction projects is likely to factor in this decision, as demand for processed timber declines, resulting in thousands of job losses and Kiwis having to head overseas for better opportunities,” he said in a statement.
“This is just the latest in a series of job losses, with 18,000 jobs gone in construction and over 11,000 in manufacturing since December 2023. It is quite clear that things are getting worse under National.”
Meager rubbished O’Connor’s remarks.
“I think Mr O’Connor making those statements from his cosy little cottage in Dunedin doesn’t quite understand the work that the government’s doing to undo six years of turmoil and neglect from the previous government,” he said.
Nelson MP Rachel Boyack said the mill closure would hit the local area, with flow-on effects felt by the wider economy.
“We need more onshore wood processing to build homes and other infrastructure, not less.”
‘Hugely detrimental’ – union
“Many of our members have been working at the mill for decades, including some who go right back to when the Eves Valley site opened in the 1980s.
“If the closure goes ahead, it will be hugely detrimental for workers and their families, as well as the wider community in the region.”
O’Dwyer-Cunliffe said it was just a proposal at this time and that the union was working with Carter Holt Harvey management to ensure workers’ voices and priorities were heard.
Smith said he had spoken to half a dozen workers.
“They are absolutely gutted. Some of them have just purchased homes and are now desperately worried about how they are going to meet those mortgage repayments.”
The forestry company planned to make a final decision on September 4, he said.
Carter Holt Harvey has been approached for comment.
rnz.co.nz
