Receiver at Southern Cross Forest Products in New Zealand to close remaining South Island operations, taking job loss tally to 179; spokesman says parties are interested in parts of business, including Thames sawmill on North Island
May 20, 2014
(Industry Intelligence Inc.)
– The receiver of Southern Cross Forest Products in New Zealand has confirmed that a further 100 jobs are to be cut, adding to the 79 jobs axed in April, according to a report by Radio New Zealand.
Southern Cross Forest Products, which went into receivership in March, employs 400 staff at six sites on New Zealand's North and South Islands. All the job losses are at operations on the South Island.
KordaMentha announced last month that it would close Southern Cross's Rosebank sawmill and shed 79 jobs across the company's sites on the South Island. The receiver also said it would wind up the company's unprofitable South Australian unit.
KordaMentha says it has been unable to find a buyer for the South Island operations, and informed staff on Tuesday that all Southern Cross' South Island operations would cease within eight weeks, bringing the total number of job losses to 179. Both the Mosgiel Remanufacturing Plant and Millstream Lumber Division in Milton are to be closed.
KordaMentha spokesman Brendon Gibson said continued trading could not be justified in its current form. He noted that parties had expressed interest in parts of the business, but there was no interest that would allow the whole business to be pursued as a going concern, Radio New Zealand reported.
KordaMentha said there had been strong interest in the company's Thames sawmill and remanufacturing businesses in the North Island.
The primary source of this article is Radio New Zealand, Wellington, New Zealand, on May 20, 2014. The original article can be viewed here.