Sawmills cut production in tougher market

Carter Holt Harvey's Eves Valley sawmill near Brightwater is likely to cut back production as the demand for timber declines but there doesn't appear to be any threat of redundancies or the mill closing, a union spokesman says.

Timber giant Carter Holt Harvey informed 145 staff at its Kopu sawmill near Thames on Tuesday that it was considering closing the mill.

The Engineering, Printing and Manufacturing Union's national organiser for the timber industry, Alan Clarence, said on Thursday morning that staff at Eves Valley also met with management on Tuesday when they were informed that the sawmill would "probably" cut back to four days a week.

Mr Clarence said the cutback was in response to a decline in demand for timber products and was an industry-wide problem. However, the announcement still came as a surprise and was made "with very little notice".

"There's been an oversupply of timber for some time," Mr Clarence said.

He said there were 100 EPMU members working at Eves Valley, which employs about 240 staff.

Eves Valley sawmill manager Robert Boddington declined to comment this morning, referring the Nelson Mail to Carter Holt Harvey's Auckland office which also refused to comment.

A number of other sawmills around the Nelson region are also cutting back production. A weakening of the building industry, decreased demand from overseas, the high dollar and increased fuel, power and compliance costs were to blame, Prime Pine commercial manager Sarah Clements said Thursday morning.

"The market is softening but we'll see things through. We are a very small player and can sell everything we produce - we have good products and good people.

"But costs are going up - fuel and power are the main drivers. Compliance costs are also a burden and they are getting worse every day.

"It's worse for a small sawmill. It may become impossible for them to operate legally in New Zealand."

Riwaka-based Prime Pine employs 30 staff and exports about half of its products, she said.

Grant Russ of Russ Sawmilling said they were being forced to cut back production to "keep alive". The small Appleby sawmill which employed four staff was "holding on" but faced a continual battle to keep prices low so it could compete.

Another sawmill manager, who did not want to be named, said it was "a tough game at the moment".

"The stinking Government doesn't help with its handling of the building industry," he said.

Nelson Pine Industries' MDF plant in Richmond is closing for 12 days next month, although managing director Murray Sturgeon said it was a planned closure to carry out maintenance. "We worked through last Christmas - we would normally do maintenance then , but the spare parts we needed as replacements were late being shipped."

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