Aug 23, 2005. /Lesprom Network/. Following a consultation process at the Tokoroa plymill, CHH woodproducts announced on Monday a restructure plan that will result in around 40 redundancies – less than original estimates. Carter Holt Harvey’s wood businesses continue to face a challenging environment and in July 2005 the company confirmed the plymill’s financial performance was being adversely affected by import competition, a softening Australian housing market and increased costs. Engineered wood products business manager John Thorburn said for the plymill to remain competitive it needed to protect its market position, reduce its cost structure and improve maintenance. “Those involved in the consultation process accepted the need to balance production by removing a shift,” said Mr. Thorburn. “Although some ideas raised in consultation will be adopted, unfortunately a reduction of roles at the plant will be necessary to achieve a competitive cost position. We respect the positive way our employees have responded to this challenge and although it is difficult news for the site, existing vacancies and further operational changes have helped limit the number of redundancies. Those affected by this restructure will naturally receive their full entitlements and we will do everything possible to offer support as they seek alternative employment. We will also seek expressions of interest in voluntary redundancies, balanced with the need to retain valuable manufacturing skills. To remain competitive the Tokoroa plymill will continue its focus on productivity, but this is an important step towards returning the site to profitability,” said Mr. Thorburn. The restructure is expected to be implemented by September 2005 and will see the Tokoroa plymill employing 200 people and producing 60-70,000 cubic metres of plywood each year.