Another major blow for the central North Island economy

Winstone Pulp has confirmed the closure of Tangiwai Sawmill and Karioi Pulpmill -- between Ohakune and Waiouru --- after grappling with high energy costs and low commodity prices.

Two hundred and 30 people will lose their jobs.

Infometrics Principal Economist Brad Olsen says it's likely to have ripple effects on the wider Ruapehu District, where job numbers have already been trending down for several years.

He says there's already uncertainty around Mount Ruapehu -- particularly with Ruapehu Alpine Lifts -- and an already difficult situation has become even more difficult.