The closure of two central North Island mills may be as much about falling returns, as rising costs
The closure of two central North Island mills may be as much about falling returns, as rising costs
11 September 2024
Winstone has confirmed it's closing its Ruapehu mills, with the loss of 230 jobs.
The company was unable to secure a government bailout, and was finding itself unable to operate with rising electricity costs.
Infometrics Principal Economist Brad Olsen says wholesale energy prices have started to ease, but the fundamentals for the mills just didn't stack up.
He says there's the potential for energy prices to rise again, and commodity prices for forestry and wood-based products aren't sustainable at the moment.
© 2025 Newstalk ZB, NZCity
