Oji Fibre Solutions (OjiFS) has decided to close its paper recycling mill in Penrose, Auckland, New Zealand. The Penrose Mill specializes in manufacturing recycled paper grades only (recycled meduim liner), manufacturing around 78,000 metric tons per year.
"This is a sad day (Sept. 18) for OjiFS and particularly our Penrose Mill employees," said CEO, Dr. Jon Ryder. "While this closure will impact directly on our 75 people at the mill, we will continue serving our customers with as little disruption as possible.
"Closing Penrose Mill will not change our Fullcircle operations. We will continue to collect wastepaper and continue to recycle around 90,000 tonnes of cardboard per year at our Kinleith Mill, near Tokoroa. OjiFS will remain New Zealand's largest paper recycler.
OjiFS operates two other mills in New Zealand — the Kinleith Mill, which produces over half a million metric tons per year of bleached softwood market pulp and kraft linerboard paper (from virgin fibre and recycled fibre) annually; and the Tasman Mill, which produces unbleached kraft pulp and K25 fibre cement pulp.
Dr. Ryder continued, "Other wastepaper will be sent to an Oji Group mill in Malaysia, who will also supply our OjiFS packaging operations across Australasia with a replacement for the recycled medium currently manufactured at Penrose Mill. The fact that the replacement supplier is an Oji-owned mill, means we can be confident it will operate under the values and standards of the Oji Group.
"I would like to emphasize that this decision to close Penrose Mill, is in no way a reflection of the caliber, dedication and skill of each and every one of our 75 staff there.
"Penrose Mill has suffered a three-year pattern of losses, with no prospect of the situation improving.
"As I've said before, these losses are caused by several issues, including but not limited to, dramatically rising energy costs, and freight and labor costs. We have looked at technology and other changes to save input costs. We have also considered options presented by our staff and their unions.
"At the end of the day, however, there is nothing we could find that would make a difference.
"We are doing all we can to support our people through this period, including matching them with positions across other parts of OjiFS, and working with other businesses to offer them the opportunity to take on high-calibre, experienced staff."
TAPPI
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