The re-opening of the mill is expected to eventually result in hundreds of new jobs. Photo: 123RF
The Tai Rāwhiti mill that ran for 30 years before it was shut down in late 2023 is set to re-open in the coming months, with new Australian owners.
About 87 staff were affected by Japanese-owned Juken's decision to close the mill, announced in late 2023, amid financial difficulties and weak demand for Japanese housing wood products.
But with settlement details expected later this month, prospective new owners Millari Group of Australia said in a statement that it will upgrade and re-establish the 25-hectare site in Gisborne - which included the sawmill, manufacturing lines for laminated veneer lumber and plywood over the coming months.
Mill general manager Shane Wilson said the company will replace old equipment at the site and eventually run 24/7, which will see 80 jobs available in the first phase and about 200 jobs at stage two.
"I think not only for our region, I think it's one of the best news out for the nation, to be honest.
"We've been inundated with some bad news throughout with mills, pulp mills closures and stuff like that. So having this mill come back to life again may even help these people that are losing their jobs, like in Tokoroa or stuff like that."
In November 2024, Oji Fibre Solutions announced it would halt paper processing which saw 230 jobs cut, and followed the closure of its pulp and paper mill at Auckland's Penrose.
Wilson lost his job after 23 years with Juken when it closed in March and said the news that it will re-open meant good job opportunities in forestry, processing and other services like log trucking.
He said it was sad the era had come to an end for Juken and the staff, and there were lots of mixed emotions.
"For me, I had mixed emotions on the closing, but I had to keep a professional for our staff and keep them positive," Wilson said.
"So I try to show up every day and give some positive energy so you know it's a new chapter for us all. And yeah, that positivity went right 'til the end 'til we closed the gates, to be honest."
Products will go to Australia re-branded under Millari New Zealand.
Meanwhile, Wood Processors and Manufacturers Association of New Zealand chief executive Mark Ross said Millari New Zealand will process 400,000 cubic metres of logs each year - while producing 220,000 cubic metres of products like veneer lumber, which are "huge" volumes.
"This is a really positive both for New Zealand and the Gisborne region," he said.
"We've had a pretty tough few months with mill closures and a drop-off in demand, but this is a sign that the markets turning around
"We're looking forward to seeing the new ownership and jobs being created, also a lot more logs being processed within New Zealand and that's the strategic direction we would like to hit down.
"We actually convert the logs and we add value in New Zealand and export the wood products offshore, so overall very positive."
Ross said it was a sign New Zealand was a good place to receive foreign investment, and make the most of the country's sustainable and plentiful supplies of timber.
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