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Hope for going-concern Southern Cross Forest Products sale

Media release: FIRST Union

Tuesday March 4, 2014

Workers hopeful of sale of Southern Cross Forest Products as going concern

The wood sector union is hopeful that jobs may be retained at a Dunedin based wood processing company.

KordaMentha was yesterday appointed receiver of Southern Cross Forest Products.

It follows the receivership of Tachikawa Forest Products in Rotorua late last year, with the loss of 120 jobs, and difficult times for many other wood processers in New Zealand.

FIRST Union has members at the company’s operations in Balclutha and Milton and a small number in Thames.

FIRST Union General Secretary Robert Reid said that workers were encouraged to hear the receiver’s view that the business will be sold as a going concern.

“Southern Cross is a significant employer in South Otago and Thames, and the loss of jobs would be a massive blow to these regions,” Robert Reid said.

“This receivership comes on top of a prolonged period of difficult times for wood processing firms.”

“The high New Zealand dollar, the high price of logs and the inadequate government procurement strategy around both the Canterbury rebuild and government house building programmes see the continuation of raw logs being exported across our wharves while workers’ jobs are at risk in the sector,” he said.

Ends.

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