142 jobs to go if sawmill closes

File photo

Carter Holt Harvey plans to shut the Eves Valley Sawmill near Nelson, affecting 142 jobs, the city's mayor says.

The facility, 21 kilometres out of Nelson, was built in the 1980s.

Nelson Mayor Nick Smith said Carter Holt Harvey, which owned the plant, 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."

The Labour Party said the proposed closure would be a major blow to the community if it went ahead.

Labour MP for West Coast-Tasman Damien O'Connor said the government's halt on major construction projects was a likely factor in the decision, as demand for processed timber was declining, resulting in thousands of job cuts.

"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."

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

E tū team leader Finn O'Dwyer-Cunliffe told RNZ workers were gutted by the proposal.

"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.