Oji Fibre Solutions (OjiFS) will close its paper recycling mill in Penrose, Auckland, New Zealand.
Chief Executive Officer Dr Jon Ryder said: “This is a sad day for OjiFS and particularly our Penrose Mill employees. While this closure will impact directly on our 75 people at the mill, we will continue serving our customers with as little disruption as possible.
“Closing Penrose Mill will not change our Fullcircle operations. We will continue to collect wastepaper and continue to recycle around 90,000 tonnes of cardboard per year at our Kinleith Mill, near Tokoroa. OjiFS will remain New Zealand’s largest paper recycler.
“Other wastepaper will be sent to an Oji Group mill in Malaysia, who will also supply our OjiFS packaging operations across Australasia with a replacement for the recycled medium currently manufactured at Penrose Mill. The fact that the replacement supplier is an Oji-owned mill, means we can be confident it will operate under the values and standards of the Oji Group.
“Penrose Mill has suffered a three-year pattern of losses, with no prospect of the situation improving.
“As I’ve said before, these losses are caused by several issues, including but not limited to, dramatically rising energy costs, and freight and labour costs. We have looked at technology and other changes to save input costs. We have also considered options presented by our staff and their unions.”
Oji Fibre Solutions is one of Australasia's leading manufacturers of pulp, paper and wood-fibre based packaging solutions.
