Operations paused at Winstone Pulp International pulpmill and sawmill as energy costs bite

By Mike Tweed
The New Zealand Herald
August 5, 2024
Category: Business & Politics
Region: International

NEW ZEALAND — A major Ruapehu employer has been forced to put a two-week “operational pause” in place across its sites. The Karioi pulpmill and the Tangiwai sawmill, located between Ohakune and Waiōuru, employ just under 300 staff. Both are operated by Winstone Pulp International. Chief executive Mike Ryan said energy prices were the main driver behind the move. “Since September 2021, energy prices have increased more than 600% – from $100/MWh to a futures price expected to average over $700/MWh for the month of August,” he said. …Ryan said a step change in pricing was required to make manufacturing viable in the long term. Rangitīkei MP Suze Redmayne said she would meet with Ryan on Wednesday morning. Ryan would also meet with Energy Minister Simeon Brown, she said. …As well as rising energy costs, market prices for pulp and timber were relatively low and under pressure, Ryan said.

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