Forest product company to shut entire operation as result of energy prices
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A large forest products company, Winstone Pulp International, is planning to shut its entire operation as a result of high wholesale energy prices.
Earlier this month, the company paused work at its two sites Tangiwai Sawmill and Karioi Pulpmill to consider its future.
In a statement on Tuesday, Winstone Pulp said it told employees about a proposal to close indefinitely at a meeting today.
If the plan goes ahead 230 people would lose their jobs.
Winstone Pulp chief executive Mike Ryan said energy prices have increased from $100 per megawatt hour (MWh) in September 2021 to $500 per MWh in August 2024.
He said power now makes up more than 40 percent of the company's costs and the increase can't be passed on to customers.
"For comparison, our overseas competitors are paying bet...