Oji Fibre Solutions, a prominent player in the paper industry, has made a strategic decision to close its paper recycling mill located in Penrose, Auckland, New Zealand. The announcement, made by Chief Executive Officer Dr. Jon Ryder, marks a significant development for the company and its workforce.
Dr. Ryder expressed his regret over the closure, acknowledging the impact it would have on the 75 employees at the Penrose Mill. Despite the closure, Oji Fibre Solutions remains committed to its Fullcircle operations, ensuring the continuation of waste paper collection and recycling activities at its Kinleith Mill near Tokoroa.
The decision to shut down the Penrose Mill comes after a period of sustained financial challenges, with the facility experiencing losses over the past three years. Factors contributing to these losses include escalating energy, freight, and labor costs, creating an unsustainable operating environment for the mill.
In response to the closure, Oji Fibre Solutions plans to redirect waste paper to an Oji Group mill in Malaysia, which will supply recycled medium to the company’s packaging operations in Australasia. This transition aims to ensure continuity in supply while upholding the standards and values of the Oji Group.
Dr. Ryder emphasized that the closure of the Penrose Mill is not a reflection of the dedication and skills of the employees there. The company is actively supporting its staff through this transition, offering redeployment opportunities within OjiFS and collaborating with other businesses to facilitate the hiring of affected employees.
Despite the closure of the Penrose facility, Oji Fibre Solutions remains committed to its sustainability goals, aiming to recycle approximately 90,000 tonnes of cardboard annually. By consolidating its operations and optimizing resources, the company seeks to maintain its position as New Zealand’s largest paper recycler.
The closure of the paper recycling mill underscores the challenges faced by the industry, including increasing operational costs and evolving market dynamics. As companies navigate these complexities, strategic decisions such as facility closures become essential to ensure long-term sustainability and competitiveness.
Industry experts suggest that such actions reflect a broader trend within the pulp and paper sector, where companies are reevaluating their operations to align with changing market demands and economic realities. By adapting to these shifts, businesses can position themselves for future growth and resilience.
Looking ahead, the closure of the Penrose Mill serves as a reminder of the importance of agility and strategic planning in the face of industry disruptions. As Oji Fibre Solutions transitions its operations, the company remains focused on its core mission of sustainable paper production and recycling, demonstrating a commitment to environmental stewardship and operational excellence.
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