Marlborough forestry improves

Despite the announcement of 60 job losses from the Nelson forestry industry yesterday, the Marlborough forestry situation is improving.

Nelson Pine Industries Ltd cited difficult market conditions resulting from the worldwide financial crisis as the reason for the cuts to its company, one of the largest single site producers of medium density fibreboard in the world.

A month ago Marlborough forestry representatives, faced with a drop in demand for timber, said the future of jobs in the district looked uncertain and some loggers had been placed on four-day working weeks. While some uncertainty remains, the situation has improved for at least two contractors.

Blenheim-based logging contractor Andy Gale said his company's nine employees had resumed five-day working weeks in mid February.

"It has stabilised," he said. "There are a few new orders coming through."

He said the Indian market was "taking quite a bit" and exports to Korean markets from Marlborough had resumed again last week although quantities remained low.

"Everyone is still a little wary, but the situation is slowly improving and all the guys are pretty happy."

Merrill and Ring NZ Ltd forest manager Murray Turbitt said the market had improved in recent weeks but it was still volatile and could change quite quickly.Merrill and Ring NZ is an American-owned forestry management company that also owns forestry in Marlborough.

"I guess if it stays like it is we will be ok, but you can't afford to take that for granted."

 Nelson Pine woes page 10.