The closure of Brightwood sawmill is a tragedy for the mill's staff who live in an area already hit hard by another local industry closing, Southland District Council Mayor Frana Cardno says.
American-owned Brightwood New Zealand surprised many people last week when it announced its Otautau mill would close in mid-June, with the loss of 60 jobs.
Mrs Cardno said it had been a tough year for Western Southland with this news and the announcement in February that Solid Energy was closing its Ohai coal mine at the end of June.
"I feel for the community. This area has been hit hard and is suffering," she said in a statement.
The company's 60 staff went through a similar process two years ago when Brightwood announced it was shutting the plant, only to make the surprise announcement a few days later the mill would stay open.
Mrs Cardno and economic development body Venture Southland had met mill management two years ago and had worked hard to avoid the mill's total closure then.
She accepted a similar revival was unlikely this time.
The council and Venture Southland want mill owners to mothball the plant rather than dismantle it, so its closure could be short-term rather than permanent.
"If the economy picks up, then the mill could reopen, as it is an important industry for Western Southland and indeed for the region."
Venture Southland's community development group manager Rex Capil said he believed the decision by Brightwood's bosses could not changed this time.
His organisation would work with staff and other residents after the closure next month to see what options were available.
Both Venture Southland and the council also planned to talk to government departments to see what support could be offered.
