A Milton sawmill has closed and 15 jobs have been lost, after being hit by the downturn in the United States economy.
Harveywood Lumber, founded in 2000, is one of four manufacturing plants owned by Southern Cross Forest Products (SCFP).
Another of those is New Zealand Wood Moulding in Mosgiel, which laid off 25 staff this week, after also being affected by the downturn in US housing market.
Harveywood, a joint venture between SCFP and the Harvey family of Milton, had suffered from the "ripple effect" that had made the going tough for New Zealand Wood Moulding, director Tom Whitefield said, as the bulk of its products were exported to the United States.
The mill was dependent on the US, and also had "significant issues to bring it up to greater efficiency".
"It's basically a victim of the market."
Staff finished work on Tuesday, and were paid the full obligations of their contract, Mr Whitefield said.
Southern Cross also owns Millstream Lumber in Milton, and Thames Timber in Thames.
Both those companies would carry on, as would SCFP, though Mr Whitefield said he expected six to 12 months of tough conditions.
