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)

Tue, 06 Aug 2024

Tue, 06 Aug 2024

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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