Port of Napier's earnings unaffected by potential WPI shutdown

Port of Napier's earnings guidance for the 2024 financial year remains unchanged, despite the possibility of a significant cargo customer, Winstone Pulp International (WPI), ceasing all manufacturing operations in New Zealand.

WPI is considering this proposal due to unsustainable energy prices.

The company, which supplies timber and pulp products for export, currently operates from its Karioi Pulpmill and Tangiwai Sawmill in the central North Island.

WPI's decision is pending the outcome of a consultation period with employees and is expected to be announced on September 9.

Napier Port handles the majority of WPI's pulp and timber, with 15,000 to 19,000 twenty-foot equivalent units (TEU) exported annually.

The port assured investors that WPI's potential shutdown would not impact its earnings guidance for the 2024 financial year, as the customer's net contribution is only 7-8%.