Mill downsize hits Otago jobs

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Blue Mountain Lumber, a timber mill at Conical Hill near Tapanui in Otago, has become the latest victim of the steady haemorrhage of jobs from New Zealand businesses.

The mill is owned by Winstone Pulp International. It announced today that Blue Mountain would be downsized, shedding 65 of 110 jobs in the process.

WPI managing director David Anderson said the current economic climate coupled with longstanding challenges facing the mill meant the company needed to significantly reduce its employee numbers.

"We will be seeking further consultation with all employees at Blue Mountain over the next two days," said Anderson.

"This is a sad day for the mill, the people and the community, but unfortunately there is no other realistic option available at this stage."

He said the company is focussing on products that have the potential to sell well in current markets.

"We cannot guarantee the outcome but we will be trying the best we can to turn this mill's prospects around."