Thursday, August 28, 2025
The proposed closure of Carter Holt Harvey’s Eves Valley sawmill near Nelson has cast a spotlight on the deep-rooted issues facing New Zealand’s forestry industry. Announced in August 2025, the shutdown would affect 142 jobs and mark a significant shift in the South Island’s timber landscape. This move is part of a broader trend of mill closures across the country, signaling systemic challenges that extend beyond individual company decisions.
Eves Valley, established in the 1980s, has been a cornerstone of the Nelson-Tasman region’s economy. Tasman Mayor Tim King expressed deep concern over the potential closure, emphasising the mill’s role as a major employer in the area. The loss of 142 jobs would have significant repercussions for the local community, affecting not only the workers but also the broader economic fabric of the region.
Industry challenges
The closure is emblematic of wider issues plaguing the New Zealand forestry sector. The Timber Industry Federation highlighted several contributing factors, including declining demand for timber, rising operational costs, and global trade uncertainties. Building consents have dropped from 51,000 in 2022 to 34,000 in the year to June, reflecting a slowdown in construction activity. Additionally, increased costs related to electricity, compliance, and insurance are squeezing margins for sawmills. Overseas markets are also unstable due to conflicts and tariffs, further complicating the industry’s outlook.
Implications for the forestry
The closure of Eves Valley adds to a growing list of mill shutdowns across New Zealand. In 2024, Winstone Pulp International closed its Karioi pulp mill and Tangiwai timber mill, resulting in the loss of 230 jobs. The company cited uncompetitive energy prices and low market prices for pulp and timber as primary reasons for the closures. These closures are not just corporate decisions; they are community events that disrupt lives and livelihoods. Workers affected by such closures often face challenges in finding new employment, especially in rural areas where alternative job opportunities may be limited.
Experts argue that addressing these systemic issues requires coordinated policy intervention. While some local governments have attempted to support affected workers through various initiatives, a more comprehensive national strategy is needed. This could include measures to stabilise energy costs, streamline compliance requirements, and support the domestic timber market. The New Zealand government has yet to implement significant policy changes to address these challenges. Without such interventions, the forestry sector may continue to face decline, leading to further job losses and economic instability in affected regions. The proposed closure of the Eves Valley sawmill is more than a corporate decision; it is a reflection of the systemic challenges facing New Zealand’s forestry industry. Addressing these issues requires a multifaceted approach, including policy reforms and support for affected communities. Without such efforts, the sector risks further decline, with lasting impacts on jobs and local economies.
Significance of New Zealand’s sawmills
In the past, sawmills played a crucial role in the early infrastructure and development of the country. Today, they promote the sustainable use of native and alternative timber species, enhancing smaller forestry operations and lowering dependency on imported woods. By utilising forest resources, sawmills have fueled economic expansion and supplied necessary building materials. Today, they are developing to process a wider variety of timbers, including those from small plantations and farm woodlots, for both domestic and international markets.
Modern Importance
Support for alternative species: Processing “alternative timbers”—species other than radiata pine or Douglas-fir—grown on smaller plantations and woodlots that are of no interest to major mills requires the use of small-scale sawmilling.
Value chain integration: To guarantee that these alternative woods reach the market and increase in value, the small-scale sawmilling industry links forest growers, timber merchants, and retailers.
Utilisation of domestic resources: Sawmills enable the processing of alternative timbers grown locally, which may replace some expensive imported softwoods and hardwoods in specialised applications.
Economic possibility: Over the coming decades, there will be a great chance to harvest, process, and market timber from New Zealand’s significant alternative timber forest resource.
Efficiency and cost savings: Because on-site portable sawmilling turns logs into timber at the source, only half of the volume needs to be trucked for additional processing or sale, which lowers transportation expenses.
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Tags: forestry industry challenges, mill shutdowns, New Zealand sawmill closure, New Zealand timber market, timber demand decline
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