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October 01, 2025
Carter Holt Harvey to Close Tokoroa Plywood Plant, 119 Jobs to Go
Waatea Team
Posted On October 1, 2025
Carter Holt Harvey has announced it will shut its Tokoroa plywood manufacturing plant in November, with the loss of up to 119 full‑time jobs. The company says it will shift from local production to importing plywood from overseas.
The plywood plant in Tokoroa, operated by Carter Holt Harvey, will cease manufacturing in November after a formal consultation period with staff. About 119 full‑time workers will be made redundant. Some employees (a small number) will remain to oversee or manage the quality of imported plywood once local production ends.The decision follows a two‑week consultation period in which the company explored options. Workers and the union have expressed the belief that the decision was already effectively made, despite the consultation process.
Import competition: CHH says it can import plywood at significantly lower cost than it can manufacture it in Tokoroa. The difference is said to be large enough that continuing local manufacturing is not economically viable under current conditions. Rising input costs: Factors like the cost of power, raw materials, and possibly compliance/regulatory burdens have increased, squeezing profitability.Changing market dynamics: Demand pressures, global supply chains, and cheaper alternatives internationally have made local production less competitive.
The redundancies will have broad effects: the 119 workers are likely mostly locals, and the loss of the plant will ripple out through contractors and associated services. The proposed timing places the final layoffs in November. Individuals are worried about financial security, ability to relocate, and whether alternative work will be available. The community, which has historically depended on timber and wood manufacturing, is facing yet another blow: earlier in 2025, other timber and paper‑industry closures in the region have already caused job losses, adding to what many describe as cumulative hardship.
Union reaction: E tū union representatives have said the consultation seems only procedural-that the decision is already made. They are calling for stronger plans to re‑use or redevelop the site, or reinvest in new industries to replace lost jobs. Local leadership: South Waikato Mayor Gary Petley described the news as “shocking” and urged more support from central government. He noted that small towns like Tokoroa need long‑term plans rather than ad hoc responses to industry failures. Workers’ perspectives: Many feel disillusioned and concerned. Some workers expressed sadness at the end of local manufacturing, especially given years of experience and commitment. Others worry they may have to leave their hometowns to find work.
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