Tasman mill under review

AUCKLAND: The future of another major industrial operation is under review because of the Covid19 pandemic.

Norwegian forest products company Norske Skog is reviewing the future of its Tasman newsprint mill at Kawerau.

Norske Skog said Covid19 has had a rapid, negative and likely irreversible impact on the industry in the region.

It said it was now looking at various longterm options including making bleached chemical pulp and, once it had a preference, it would be put to staff.

The Kawerau mill employs about 160 staff and has been battling for survival for more than a decade

That has resulted in temporary closures, halving production to 150,000 tonnes a year, and selling assets.

Along with other major energy users, it has long complained about high energy costs.

It is the latest heavy industry enterprise to come under the microscope. Tiwai Point smelter is slated for closure and major restructuring is taking place at New Zealand Steel's Glenbrook mill, and the Marsden Point oil refinery. — RNZ