Sawmill shutdown due to high energy costs latest harbinger of manufacturing slowdown

Sawmill shutdown due to high energy costs latest harbinger of manufacturing slowdown
The timber sector says energy costs are driving them out of business. (Image: NZME)
Oliver Lewis
Ian Llewellyn
The largest employer in the Ruapehu District has paused operations at its pulpmill and sawmill sites after a nearly 600% increase in energy costs since 2021.Manufacturers and other energy-heavy industries are feeling the squeeze, with wholesale gas and electricity prices 400% higher than a year ago due to low hydro lake storage and scarce gas, among other factors.The high cost of energy is putting New Zealand firms at a competitive disadvantage and raising the spectre of a manufacturing exodus. Methanex, the largest gas user in the country, is...

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