Winstone Samsung's Karioi mill now employs over 140

Waimarino Bulletin, Volume 3, Issue 1, 28 May 1985, Page 4

Winstone Samsung's Karioi mill now employs over 140

The recent hiring of 15 extra staff has increasec the Winstone Samsung Karioi mill workforce to over 140. The mill was opened in 1978 and a major expansion scheme was completed in January of this year. "As a result of the expansion we need to train more staff to deal with the new plant we have installed," says Mr Klas Kronqvist. "The mill prefers to employ local people, although it is often difficult to find people with the necessary skills without 'poach-

ing' them from other milling companies. "We will increase our production from 70,000 to 120,000 tonnes with the expansion," says Mr Kronqvist. The mill's output of pulp is exported to Japan, Korea, China, Indonesia and Australia. New Zealand's main competitors in this field are Scandanavian and Canadian producers, who often have lower freight costs. "Up until two and a half years ago, we found it hard to compete with Canadian and Scandinavian companies because we were produc-

mg unbleached pulp which eould not be used to make printing and writing paper," said Mr Kronqvist. Canada and Scandinavia were exporting bleached pulp and to compete on the world market the Karioi mill began producing bleached pulp in March 1983. "We were lucky we bought and imported our new equipment for the expansion before the devaluation of the New Zealand dollar. "However, the savings we made were soon eaten up by increases in electricity, road user charges and the cost of imported oil," said Mr Kronqvist. Another financial blow the mill has suffered this year is a 50% cut in its income from the Government's production incentive scheme. Before April 1st the Government reimburs'ed Winstone Samsung ten percent of the total value of pulp loaded on board ship for export. The Government now only pays five percent and the scheme will be phased out completely over the next three years. The mill buys 250,000 to 300,000 tonnes of pinus radiata from the New Zealand Forest Service annually. However, the company has planted its own forest which will come on stream in 1995. Other New Zealand mills manufacture their own paper, as well as pulp. "That is what I envisage Karioi doing in the future, but I cannot give a specific date," concluded Mr Kronqvist.