Blue Mountain Lumber to downsize

For immediate release

Blue Mountain Lumber to downsize

10 MARCH 2009: Winstone Pulp International (WPI) Managing Director David Anderson has announced that the company’s Blue Mountain Lumber timber mill at Conical Hill near Tapanui will today begin a process of significantly reducing its operations.

At a meeting with employees today Mr Anderson said that the current economic climate coupled with longstanding challenges facing this mill meant the company needed to significantly reduce its employee numbers at the site.

“We will be seeking further consultation with all employees at Blue Mountain over the next two days, but expect that approximately 65 positions out of the 110 would be made redundant,” Mr Anderson said. 

“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,” Mr Anderson said.

“We have been working for a long time to address issues of viability at this mill. However the challenges it faces have only been made worse by the current economic environment and it is simply no longer possible to continue as we were before.”

He said that by radically downsizing now and focusing on products that have the potential to sell well in current markets the company would attempt to bring the mill to a viable position.
 
“We cannot guarantee the outcome but we will be trying the best we can to turn this mill’s prospects around,” he said. 

In addition to redundancy payments to those who are leaving, WPI will be providing assistance to employees.

ENDS

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