Closure of Sawmill highlights impact of dollar

Media Release

Tue 28 July 2009

For Immediate Release

Closure of Gisborne’s Prime Sawmill highlights devastating impact of dollar

The announcement today by WPI International of the closure of the Prime Sawmill in Gisborne again highlights the devastating impact of our volatile dollar, says Wood Processors Association chief executive, Peter Bodeker.

“While the immediate impact is felt by the 65 mill staff, the wider community of contractors, loggers, truckies, and many others who rely on the Prime Sawmill for their livelihoods will also hurt,” says Bodeker.

“Our members are in an impossible business environment combining a high and very volatile kiwi dollar. Since March the value of our dollar has increased by 35%. This instability makes planning impossible.”

“The point needs to be made very clearly that this is not a marginal milling operation. Investments were made to ensure that it remained a modern, efficient, and highly productive mill. This is a worrying development for the industry and shows how deep currency instability can cut.”

“This is a real tragedy for the Gisborne community and marks a point of no return. Conditions may improve over the coming months, or they may not. All we can be certain of at the moment is that this level of currency instability has led to losses that this operation simply cannot sustain.”

“WPA represents sawmillers producing in excess of eighty percent of New Zealand’s structural lumber, pulp and paper, woodpanels, and the manufacturers of frame and trusses” he says.

ENDS

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