They were provided information at a meeting of all staff called by the company at 8.00 am this morning. Union representatives are calling on the Government to urgently step in and save the mill by reducing wholesale energy costs in any way possible.

"This has come like a bolt out of the blue for workers and was completely unexpected," said Justin Wallace, organiser for FIRST Union, which represents production workers on site.

Joe Gallagher, E tū industry organiser, said workers have been repeatedly told by the company over the years that the Penrose mill, which turns recycled paper and card into pulp, was the most efficient site OJI had in the country.

"They are gutted that the company has now told them that, pending consultation, the site will close," said Mr Gallagher. "We understand wholesale energy costs are way too high but this can’t be the end of the story for Penrose, and there has to be a way to save these jobs and the recycling capacity of the mill."

"We were completely shocked," said Ben Wolferstan, Machine operator at OJI Fibre for more than 20 years. "The mill has been running well and we thought we had stable jobs and a future. This came out of the blue."

"Orders are piling in and we’ve been repeatedly told that we’re efficient, and that our plant is profitable - did something change overnight?"

"I don’t know what’s next but there has to be some way to save the mill, bring down energy costs, and make sure that wastepaper isn’t going overseas or sent to landfill instead of being recycled."

This announcement follows the decision of another pulp and paper manufacturer, WPI, to cease production at its Kariori mill for 2 weeks because the huge increase in energy prices has made it economically unsustainable to continue production. Workers in many other manufacturing companies are facing vulnerable employment due to high energy costs.

"Another crazy outcome of the proposal is that New Zealand recycled paper and cardboard will now be shipped to Malaysia for pulping and then back to New Zealand instead of being processed in Penrose," said Mr Wallace (FIRST Union organiser).

"We can’t meet our climate goals as a country if we’re going to close vital recycling infrastructure like the Penrose mill," said Mr Gallagher (E tū Negotiation Specialist).

After hearing the company announcement, workers attended a union meeting and then were given the rest of the day off by the company. OJI Fibre has given the workers and their unions one month to provide feedback on the proposal to close the mill as required by the collective agreement it has with the FIRST and E tū unions.

"The workers and unions will spend the next month working on a proposal to challenge the intention to close," said Justin Wallace. "If Penrose were the first to go, they wouldn't be the last."

"We will also be raising with the Government the issue of the exorbitant prices that electricity and other energy companies are charging, which has been made worse by the privatisation of energy companies under the Key government."

Mr Gallagher said there was no need for more unemployment and it was crucial that the Government step in now to make it clear that they will protect New Zealand jobs and infrastructure, rather than fixating on road cones and other meaningless political distractions.

"More and more manufacturing sites are closing, with large scale worker redundancies," said Mr Gallagher. "If this continues there will be no manufacturing left in New Zealand."