Bright Wood mill at Otautau was used by its Amercian owners to produce timber for the US market. A spokesperson said the strong dollar had hurt its exports, along with “aggressive” interest rates to curb consumer spending and higher operating costs.
Wood Processors Association chairman Dave Anderson said four more mills were on the brink of closure and other export industries were also being hurt. “We have been profoundly hit by the very high New Zealand dollar for a very long period,” he said.
The government pledged to maintain inflation within 1-3% and the country now had the highest interest rates in the developed world. The kiwi dollar fell to US60 cents last year, but rebounded back to US70 cents.
Bright Wood Otautau is to close in March with the loss of 100 jobs and there are concerns for Lakesawn Timber, which could go down with the loss of 80 more.
A spokesperson for Bright Wood said revenue was down 25% on the year at Otautau, but the company hoped to find a buyer, who would reopen the site.
