Proposal to close Penrose paper mill as high energy costs bite

The interior of the Penrose paper recycling mill. (Image: Oji)

Wed, 07 Aug 2024

The largest producer of recycled paper products in New Zealand is proposing to close its Penrose mill, in part due to rising energy costs.Days earlier, central North Island timber and pulp producer Winstone Pulp International announced it was pausing operations at its sawmill and pulpmill, citing a more than 600% increase in electricity costs since 2021.Manufacturers and other energy-heavy industries are feeling the squeeze, with gas and electricity wholesale prices trading at prices 400% higher than a year ago due to low hydro lake storage and...

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