Otago set to lose 100 forestry jobs

More than 100 Otago jobs could be gone next month from Southern Cross Forest Products.

The company's receivers, KordaMentham, told staff yesterday its four plants in Otago might be "progressively'' closed from mid-June.

Brendon Gibson, of KordaMentha, addressed the 101 remaining staff at meetings at its Otago plants.

He said Southern Cross' Thames sites would continue to operate but there had been no interest in buying the Otago sites as a going concern.

The decision would affect 66 staff from the company's New Zealand Wood Mouldings plant in Mosgiel, 26 from Millstream Lumber in Milton, one from its Milburn site and eight remaining staff at Rosebank Mill in Balclutha.

SCFP was placed in receivership on March 3 with assets of $78 million, debt of $58 million and about 400 staff throughout New Zealand.

About 80 staff were made redundant in late-April because of a lack of profit and fire damage at the Mosgiel site.

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