Oji Fibre Solutions (OjiFS) announced the closure of its paper recycling mill in Penrose, Auckland.
In August 2024, Oji Fibre Solutions began consultation on a proposal to close its paper recycling mill in Penrose, Auckland. The company has supported its staff through this period, including matching them with positions across other parts of OjiFS and working with other businesses to offer them the opportunity to take on high-calibre, experienced staff.
“This is a sad day for OjiFS, particularly our Penrose Mill employees. While this closure will directly impact our 75 people at the mill, we will continue serving our customers with as little disruption as possible,” said Chief Executive Officer Dr Jon Ryder.
“Closing Penrose Mill will not change our Fullcircle operations. We will continue collecting wastepaper and recycling around 90,000 tonnes of cardboard annually at our Kinleith Mill near Tokoroa. OjiFS will remain New Zealand’s largest paper recycler.”
Dr Ryder added that other wastepaper will be sent to an Oji Group mill in Malaysia, supplying OjiFS packaging operations across Australasia with a replacement for the recycled medium currently manufactured at Penrose Mill.
“The fact that the replacement supplier is an Oji-owned mill means we can be confident it will operate under the values and standards of the Oji Group. I would like to emphasise that this decision to close Penrose Mill is in no way a reflection of the calibre, dedication and skill of every one of our 75 staff there.”
He also mentioned that Penrose Mill had suffered a three-year pattern of losses with no prospect of improving the situation. These losses were caused by several issues, including but not limited to dramatically rising energy costs and freight and labour costs.
“We have looked at technology and other changes to save input costs. We have also considered the options presented by our staff and their unions. However, nothing we could find would make a difference.”
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