Prime Sawmill radically downsizes to avoid closure

For immediate release

Prime Sawmill to avoid closure by radically downsizing

3 August 2009: WPI International Managing Director David Anderson said today that the company’s Prime Sawmill at Gisborne will radically reduce its operations at the site instead of proceeding with an anticipated closure.

The company said last week that closure was expected because the mill had been running at very high losses caused by a downturn in international prices and a continued high New Zealand dollar.

Over recent days the company had continued to work through all other options. Staff had come up with good proposals for trying to keep the site going and suppliers and customers had offered assistance on pricing.

“We have appreciated this input and worked through all these options. We will now work to keep the mill going on a very much reduced basis. But the reality is that total numbers employed at the mill will still have to fall from 65 to around 20,” he said.

“The mill still faces serious challenges. But we will keep the site operational for as long as possible and monitor progress closely so we can at least aim to capture gains from any possible future improvement in trading conditions,” he said.

WPI will be advising staff who are leaving of their redundancy payments and also be providing assistance to employees.

ENDS

© Scoop Media