A production line at Daiken New Zealand’s medium density fibreboard (MDF) production facility at Sefton, North Canterbury, will close at the end of the month.
The decision to retire the line, which has been in production since the factory opened in 1975, follows Daiken announcing a restructure in May.
Closing the line which has become difficult to maintain due to its age, comes with the loss of 40 jobs. Nearly all effected have already left the business through attrition.
A second line will continue to operate, in conjunction with Daiken’s sister plant in Southland.
While the line being retired still produces the ‘‘best MDF’’ in the world, which is prized in Japan, Daiken’s key customer, it has failed to make a profit for some years.
Human resources manager Vanessa Croft says while there is demand for the product from the line — known in the industry as thick panel — other factories worldwide are able to use more sophisticated machinery and technology, making them more responsive to the market, and with a wider array of technical specifications.
‘‘I guess a simple analogy would be with photography – our line is the equivalent of using film and a darkroom versus digital.
‘‘The quality is still exceptional, but input costs, freight and other constraints make it noncompetitive,’’ she says.
It was therefore ‘‘reluctantly’’ agreed to retire the line.
‘‘ As a 24/7, 365 operation, it is a significant day when a production line that has been running for almost 50 years, must be turned off once and for all.
‘‘We have maintenance engineers who have specialised in keeping it running for decades.
‘‘We are all very sorry this has had to happen, and that we’ve also had to say goodbye to 40 valued workers,’’ says Ms Croft.
Almost all those affected by the closure of the line, have left the company for other jobs.
The shut down has also meant a reduction in its support teams, such as mechanics, electricians, sales and technical staff.
The second line, which was installed in the 1990’s, makes a clean, thin panel which has a wide variety of applications and competes well in Asia.
Ms Croft says Daiken is making a lot of headway in broadening its markets.
‘‘Our amazing engineers and technicians are applying all kinds of innovations to coax productivity out of Line 2 that will supplement the closure of Line 1, so the intent is that we’ll continue to run 24/7, 365 days of the year.
At its peak, Daiken — previously Carter Holt Harvey and Canterbury Timber Products — had just over 180 staff. Today there is 140.
Its production crews, have shrunk as a result of the close down — from around 20 people per team to about
14. The original Customwood produced in the factory was world class, because it was made from locally grown, whole log Radiata pine, which provides a superior finish.
According to The Leading Edge by Piers Maclaren: The Originating History of MDF in New Zealand, Radiata pine has features and characteristics that results in a naturally made premium product, highly prized internationally as a wall and flooring product. The product was also renowned for innovations developed at the Ashley factory that made Customwood exclusively, a premium for many decades.
The plant was officially opened by Robert Muldoon in May 1977. At the time it was North Canterbury’s largest single employer and was the largest industrial development in the South Island since Tiwai. Its two plumes of steam quickly became a familiar landmark for many travellers in North Canterbury, even from the air.
At the time it had over two thousand shareholders.
When the first board was made, there were only 42 employees, now known as the ‘originals’ and the ‘first pioneers’.
Ms Croft says there is still one on its books from the well-known Lochhead family in Sefton.
By all accounts, the originals were very productive despite the low headcount, simply because everybody got involved. The charismatic leaders such as Murray Sturgeon, ‘Doc’ Haylock and Tony MacGibbon chose to have their offices at the plant to be close to the action, dressed in overalls, and ‘mucked in’ when necessary.
Staff were paid 10 percent above standard Union rates and paid good overtime.
But probably more importantly, they felt like family, and spent a lot of time socialising as well as working together.
