Nelson Sawmill Closure Threatens Jobs as Company Consolidates Operations

The potential closure of a sawmill located 21 kilometres from Nelson could result in significant job losses as Carter Holt Harvey considers consolidating its operations. The company’s decision is part of a strategy to streamline its resources, notably shifting focus to its Kawerau plant in the Bay of Plenty region. Nelson Mayor Nick Smith confirmed that the consultation process regarding the closure is set to conclude on September 1, 2023, but after a meeting with company management, he expressed skepticism about the possibility of reversing the decision.

Smith stated, “I put to them was there anything that council or government could do that would save the local jobs, and they made plain not really.” He emphasized that the consolidation of their timber manufacturing business across New Zealand is the primary factor driving the closure of the Nelson facility. This news has raised concerns among local workers and their families.

The situation has garnered attention from government officials. Shane Jones, the Regional Development Minister, along with James Meager, South Island Minister, were briefed by Smith about the impending closure. Smith shared that the ministers expressed their disappointment but also reassured him that government agencies, including the Ministry of Social Development, are prepared to assist the workers and families who will be affected if the closure proceeds.

The emotional toll on employees is profound. Smith reported having spoken to several workers, who expressed feelings of despair regarding their job security. “They are absolutely gutted. Some of them have just purchased homes and are now desperately worried about how they are going to meet those mortgage repayments,” he said. This highlights the personal impact of the potential closure, as many employees face uncertainty about their financial stability.

The final decision regarding the sawmill’s future is expected on September 4, 2023. As the date approaches, both local officials and workers remain on edge, hoping for a resolution that preserves their livelihoods. The outcome will not only affect the individuals directly employed at the sawmill but also the broader community, which relies on the facility for economic stability.