JNL Plant to Boost Jobs with Multi-Million Dollar Lathe Installation

The Juken New Zealand (JNL) plant in Wairarapa is set to enhance its operations with the installation of a new wood processing machine valued at “tens of millions of dollars.” This investment is expected to restore over 20 jobs lost following an electrical fire in November 2024 that destroyed a crucial production lathe.

The previous 3.1-metre log lathe was essential for producing thin sheets of wood veneer. After the fire, the management team, alongside local and imported technicians, committed to maintaining production by sourcing veneer sheets from a JNL facility in Northland. Now, approximately 18 months later, preparations are underway to commission a state-of-the-art replacement lathe manufactured by Meinan Machinery Works in Nagoya, Japan.

This new machine has the capability to produce three times the output of its predecessor, positioning JNL to expand its market for laminated veneer lumber (LVL) framing within the domestic construction sector. The installation process will involve considerable logistics, with 40 large shipping containers required to transport the equipment to New Zealand.

Karl Burling, general manager of the JNL Wairarapa mill, emphasized the importance of the domestic market for the plant’s continued viability. He stated, “The good story out of this is the ongoing commitment to continue to invest from [parent company] Wood One, which is committed to looking after its customers.”

Significant work has been undertaken in preparation for the new lathe. The existing foundations were removed and replaced with a precision-engineered concrete pad, requiring 400 tonnes of concrete and around 30 tonnes of steel reinforcement. While the new lathe will be more energy-efficient, it demands higher power loads, necessitating upgrades to the electrical infrastructure at the plant.

Burling noted, “It’s technologically improved so there’s a lot more efficiency and it’s capable of almost three times the operating speed of our previous one.”

In the interim, the absence of a lathe had forced the company to rely on shipments of veneer sheets from its Northland facility, which allowed the Waingawa plant to continue producing LVL framing and trusses. This operational disruption led to the laying off of approximately 24 staff members in April 2023, most of whom accepted voluntary redundancy.

The new lathe is expected to become operational around mid-April 2024, at which time JNL plans to begin hiring, restoring its workforce to around 160 factory floor employees, in addition to 20 management and administrative positions, as well as contractors.

The fire in 2024 not only destroyed the lathe but also inflicted substantial damage to the supporting infrastructure of the plant. Although insurance covered much of the machinery and infrastructure losses, the interruption to business operations incurred significant additional costs, including increased production times and ongoing transportation expenses.

The Wairarapa facility also houses a sawmill and a laminated lumber production line, which produce high-end wood products for markets such as Japan. “That is still crucial to our supply for Wood One,” Burling remarked.

Sean McBride, an executive member at JNL, expressed optimism regarding the new machinery’s potential impact on production. “It gives us the opportunity to expand our sales and look for global opportunities for our products as well,” he stated. “There are some real positives that can result from this installation.”

As JNL prepares for this significant investment, the focus remains on restoring jobs and enhancing production capabilities, ensuring the mill’s role in the regional economy and the broader construction market.