Mill shut confirmed

Ruapehu Bulletin, Volume 14, Issue 656, 1 October 1996, Page 3

Mill shut confirmed

Winstone Pulp International has confirmed that its Karioi pulp mill will shut down, for about a month, as reported in last week' s Bulletin. The shutdown was due to start today and would be for one month, said WPI general manager Dave Anderson. "This has become necessary as a result of low demand for pulp world-wide as customers had built up their inventories over the northern summer period and are now pausing before recommencing normal purchasing patterns," said Mr Anderson. He said the situation for WPI is exacerbated by the increasing value of theNew Zealand dollar, the effects of which have not been able to be offset despite considerable productivity increases at the Karioi Mill. "This shut follows a similar shutdown at the same time last year when the international pulp market went into a sudden decline. Since that time there has been a gradual improvement in both price and demand although price has not yet reached a level where pulp producers can be profitable. However, it is expected that once realistic price levels are reached they will be maintained for a much longer period than experienced in 1995." He said WPI's competitors in North America and Scandinavia are also shutting which will assist the market in establishing an equilibrium between supply and demand. Staff at the mill are being encouraged to take annual leave and those unable to do so will be found mill work.