Juken New Zealand has confirmed to Waatea it will close its Northland Mill in Kaitaia after concluding there is no financially sustainable pathway to keep the operation running.
The decision follows months of efforts to find a buyer or alternative business arrangement that would allow the veneer mill to continue operating. The company says it explored a range of options, including a formal sale process, but none proved commercially viable.
Before confirming the closure, Juken undertook a formal consultation process with employees and union representatives. The company says it carefully considered feedback received throughout the consultation before making its final decision.
The closure is expected to have a significant impact on employees, their whānau and the wider Far North community, where the mill has been an important employer for many years.
Juken says its immediate priority is supporting affected staff through the transition. Employees will be offered discussions around redeployment opportunities within the wider business, alongside access to financial advice, wellbeing services, employment assistance and training opportunities.
Production at the Northland Mill will progressively wind down over the coming weeks, with the site scheduled to close by 21 August 2026.
Despite the decision, the company says it remains open to discussions with any potential buyers and will continue exploring future opportunities for the site’s land and assets should viable proposals emerge.
The closure affects only the Northland veneer mill. Juken confirmed its Triboard Mill in Kaitaia and its Wairarapa manufacturing operations will continue to operate as normal.
The company also says the process to explore a potential sale of the Triboard business as a going concern remains underway.
Juken says it remains committed to New Zealand’s forestry and manufacturing sector, describing the decision as part of ensuring the long-term sustainability of its wider operations.
The company, owned by Japan-based WoodOne Ltd, has operated in New Zealand since 1990 and says it has invested more than $720 million into its forestry and wood processing businesses. It currently manages around 30,000 hectares of certified plantation forests and employs hundreds of workers across its forestry and manufacturing operations in Te Tairāwhiti, Te Tai Tokerau and Wairarapa.
The closure marks another significant challenge for Northland’s manufacturing sector and raises fresh questions about the future of regional processing industries amid changing global market conditions.
Read the full statement here:
Statement from Yasufumi Tsuchiya, Director, Juken New Zealand (JNL)
Juken New Zealand has concluded consultation with employees regarding the future of Northland Mill and has made the difficult decision to proceed with the closure of the mill.
This decision follows an extensive process to identify a buyer or alternative arrangement that would allow the mill to continue operating in a financially sustainable way. Over recent months, we explored a range of options, including a sale process and other potential business arrangements. Despite those efforts, we were unable to identify a viable pathway forward.
Before reaching this decision, we undertook a formal consultation process with employees and union representatives. We carefully considered the feedback received and would like to thank everyone who participated in that process.
We recognise the significance of this announcement for our employees, their whānau and the wider Northland community. Many people have dedicated years of service to Northland Mill, and we acknowledge the impact this decision will have.
Our focus now is supporting affected employees through the next stage of the process. This includes discussions about redeployment opportunities across JNL, as well as access to a range of services including financial advice, wellbeing support, and employment and training opportunities.
The current plan is for the mill to close by 21st August 2026. Production activity will gradually reduce over the coming weeks as remaining work is completed.
While the decision has been made to close Northland Mill, we remain open to conversations with potential buyers and continue to explore opportunities relating to the land and assets. We will provide further updates if there are any developments.
This decision relates only to the Northland Mill, which produces veneer. The Triboard and Strandboard produced at Triboard Mill and J-frame, J-ply and solid wood produced at Wairarapa Mill are not impacted by this announcement.
The process to explore a potential sale of Triboard as a going concern remains ongoing.
JNL remains committed to New Zealand and to maintaining a sustainable forestry and manufacturing business here. Decisions relating to the Kaitaia mills have been made with the long-term viability of the wider business in mind.
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