Auckland Mayor Wayne Brown mulls buying at-risk Kaitāia mills
Auckland Mayor Wayne Brown said the council is considering buying forest-products mills at risk of closure in the town of Kaitāia in northern New Zealand. The plan is being examined as part of a regional development and forest residue valorisation initiative. The decision will go to a vote at the June council meeting.
Auckland Mayor Wayne Brown told RNZ Business that the council is considering buying two forest-products plants in the northern New Zealand town of Kaitāia, whose closure has been announced. 'We're chewing it over,' said Brown, who added that the plan could be part of Auckland's strategy of both creating local jobs and using forest residue for bioenergy production. The acquisition value is reported at NZ$28 million.
The Kaitāia plants belong to Northland Forest Holdings and have 312 employees; the company announced last month it would close them in December 2026. Auckland Council's acquisition assessment also includes supplying 92,000 tonnes of forest residue annually to biomass plants in the Kawerau region. The plan is being modelled around a partnership option with Norway's Statkraft AS.
Kaitāia Mayor Moko Tepania described Auckland's interest as 'critical for the northern region's economy'. New Zealand Greens spokesperson Chlöe Swarbrick called the plan 'conditionally supported'. The Auckland Council will vote on the acquisition at its mid-June meeting; opposition councillor Maurice Williamson questioned 'the risk that will be passed on to Auckland ratepayers'.
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