7:01 am today

Kinleith pulp and paper mill falls silent

7:01 am today
The Kinleith mill in Tokoroa

Kinleith pulp and paper mill was opened 71 years ago by Prime Minister Sidney Holland. Photo: Libby Kirkby-McLeod

The Kinleith pulp and paper mill in South Waikato was opened by Prime Minister Sidney Holland in 1954.

On Monday, 71 years later, the last functional paper-making machine falls silent, with the loss of about 150 jobs.

A RNZ documentary about the mill shortly after it opened captured the mood of a booming town, a valuable export industry and cutting-edge technology.

Seven decades later, and after many cuts and retrenchments, South Waikato Mayor Gary Petley described the mood in town.

"A fair amount of uncertainty, a little bit of angst, because of what has happened, and I think more of a realisation there's not a lot they can do about it," he said.

Petley once worked at the mill and he still had two sons employed there. He described the mill in its heyday as a local industry that enabled intergenerational wealth and opportunity.

"If your grandfather worked there or your father worked there, there was every probability that the sons or daughters would follow."

It led to a vibrant community in Tokoroa.

"One of the biggest things for me is the richness of the culture side of things, with all the different races of people, who came here to build Tokoroa and make Tokoroa what it is."

You heard this even in the RNZ documentary from the 1950s - there were interviews with mill staff from Canada and Poland.

Not that Tokoroa ever wanted to be known just as a mill town.

Erica Rowe worked at the South Waikato News in the 1950s and told Rex Sayers that, although locals knew the mill was responsible for most of its growth, they did not want to feel that, without the mill, the town would be non-existent.

Mayor of South Waikato Gary Petley.

Tokoroa Mayor Gary Petley once worked in at the mill and still has two sons working there. Photo: Libby Kirkby-McLeod / RNZ

That sentiment was echoed today by the owner of local station Cruise Radio, Johnny Dryden.

"You need to be mindful now that the mill's not the only large employer in Tokoroa or in the nearby vicinity of Tokoroa," he said.

For his part, Dryden felt positive about the town's future.

"It's a great area to bring a family up, where you can go and pick your kids up from school, and go and do things in the community."

There was no doubt that the end of paper manufacturing would hit some hard.

E Tu mill union delegate Ian Farall said everyone was disappointed paper production was finishing.

"The fact is this is the last bastion for making paper in New Zealand," he said. "There is no other producer of what we do in New Zealand, so it's not like I can go down the road and get a job."

He said working at the mill had enabled him to live a good life and he worried for younger workers who had lost their jobs, knowing several who had given up on New Zealand and moved to Australia.

"[It's] not good for those people who have young families and have got no job, and have a mortgage locally and everything like that - that will be a tough time for people."

South Waikato Investment Fund Trust (SWIFT) chief executive Clive Somerville said the end of paper production at Kinleith marked the close of an era, one that shaped the South Waikato's identity for generations.

Ian Farrall who works at the mill. His job is proposed to be cut. E tu delegate.

Ian Farall: "It's not like I can go down the road and get a job." Photo: Libby Kirkby-McLeod

"There's definitely a sense of loss and uncertainty around town, but also deep pride in who we are."

However, he said the community was built on primary industry and hard work, and that heart was still strong.

"Despite global and national headwinds, there's real momentum here - residential and commercial development is underway.

"Project Phoenix is backing displaced workers, and agencies like MSD are stepping up alongside community groups and employers."

OJI Fibre Solutions chief executive Jon Ryder said the mill continued with pulp-only production.

"Our priority has always been to minimise job losses through redeployments, and to run a thorough and fair process," he said.

"Through these efforts and a voluntary redundancy programme, we managed to redeploy more than 30 people within the business and keep the number of compulsory redundancies to less than half of the total."

The mill was still in a transition phase for some operations staff and currently reviewing support role requirements, so the final number of job losses was not yet known.

"However, we can confirm around 150 employees will depart OjiFS on 30 June."

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