Southern forestry company mothballing manufacturingFriday 20 Apr 2012 City Forests in the lower South Island, New Zealand announced yesterday that they’ll be considering mothballing their Milburn wood processing operation just north of Milton. Established in early 2006, the operation was set up principally to supply high quality clear boards from the company’s pruned forests to the US housing market. Since that time there has been a significant and well documented decline in both house building and general economic activity in America, Australia and New Zealand.In addition, returns from exports to Asia, particularly China, have been impacted by competition from North American mills and the high value of the NZ dollar. Thirty one staff are employed at the Milburn plant. The proposal to mothball the processing operation doesn’t impact substantially on the management of the company’s significant forest estate. |
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