Proposal to close Penrose paper mill as high energy costs bite

Proposal to close Penrose paper mill as high energy costs bite
The interior of the Penrose paper recycling mill. (Image: Oji)
Oliver Lewis
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...

More Primary Sector

BX Foods settles director disputes, posts $7.9m loss for 2023
Primary Sector

BX Foods settles director disputes, posts $7.9m loss for 2023

The Chinese-owned food company removed three executives, alleging fiduciary breaches.

Fonterra’s NZ milk collections hit five-year high
Primary Sector

Fonterra’s NZ milk collections hit five-year high

The increased production comes as forecast milk prices point to record levels.

Riley Kennedy 02 Jul 2025