Norway's Norske Skog - the world's second biggest producer of
newsprint - says one of its two paper machines at the Tasman
Mill at Kawerau will close as of today with the loss of 110
The company first announced its intention to shut one machine
last September, following a review of its newsprint capacity
The remaining Tasman machine will continue to produce
newsprint predominantly for the New Zealand and Australian
markets, Norske Skog said in a statement.
Over the last four months, management had worked closely with
employees, unions and other stakeholders on the detailed
closure arrangements, including a mill-wide restructuring
programme, the company said.
"As a result of these discussions and significant
redeployment within the mill, the final number of
redundancies will be around 110, compared to the previous
media reports of 130," it said.
The redundancies would occur over the next three to four
"As is widely understood, this decision has been brought
about by global market forces within our industry and no-one
is to blame," Peter McCarty, general manager of the Tasman
The second paper machine had operated successfully for over
"The challenge for our mill and our remaining machine is to
be a low cost producer of quality newsprint and we are well
positioned to meet this challenge," he said.
"We will also be looking to successfully leverage off this
base to seize new opportunities that will invariably come
along in the future," he said.
A spokesmen for the the union covering the plant, the EPMU,
declined to comment to APNZ on the machine's closure.
Norske Skog has the widest geographical spread of all the
paper producers, with mills 11 countries on all continents