Forestry and wood processing company, Juken New Zealand, a unit of Japan's Wood One, has confirmed it is going ahead with changes to the products made at its East Coast Mill in Gisborne to return the plant to profitability and secure its long-term future.
The company was considering stopping production of Plywood and Laminated Veneer Lumber (LVL) products and reducing the manufacture of Structural Laminated Veneer Lumber (SLVL) at its East Coast Mill because those parts of the business had been operating at significant losses for a number of years.
The Mill will continue to make high-value solid wood products used for high-end residential and commercial interior cabinetry, furniture, solid doors and feature walls and, overtime, this side of the business will expand.
Juken General Manager, Dave Hilliard said the consultation sought alternative proposals to mothballing the Plywood production line and reducing the production of SLVL (veneer) products.
“We’ve carefully considered the feedback received, including a suggestion to start producing plywood for ‘affordable housing’ in New Zealand. However, given the age of the machinery and the investment required to upgrade it to produce different plywood products these proposals don’t give us a viable solution to the issues we’re facing. The proposal asked for the decision to be delayed. However, we can’t continue sustaining these losses. Delaying the decision does not change the fact that the machinery cannot economically make product suitable for the low-cost housing market.”
The Juken mill at Matawhero opened in 1994 and employs around 200 full time employees. The mill processes Radiata Pine from the company’s East Coast forests to produce a range of solid wood and engineered wood products like Plywood, LVL (Laminated Veneer Lumber) and SLVL (Structural Laminated Veneer lumber), mainly for the Japanese housing market.
