The South Waikato district is delivering ambitious growth plans with multiple major new business and housing investments that will help offset the closure of Kinleith’s paper production line and associated job losses says South Waikato District Council Mayor Gary Petley.

Mayor Petley says South Waikato District Council has created Project Phoenix to proactively support people who have been made redundant into new jobs and help contractors affected by the mill closure to find new work.

“It is disappointing the paper production line is closing and we sympathise with those who have lost jobs and contracts. Through Project Phoenix the Council is collaborating with Kinleith owner Oji, Government, Ministry of Social Development, community organisations and educational and training institutes and businesses operating in South Waikato to help employees and contractors transition to new employment.”

Mayor Petley said there was good news today that Oji would keep Kinleith’s pulp production lines open ensuring the continued employment of many employees and he acknowledged the support of Deputy Prime Minister Winston Peters and local MP and Minister of Social Development Louise Upston in discussions with Oji.

He said the Council works closely with the community-owned development fund South Waikato Investment Trust Fund (SWIFT) which supports the regeneration, development and enhancement of areas of social and economic deprivation in South Waikato.  

SWIFT CEO Clive Somerville said SWIFT, with support from Kanoa and Trust Waikato, developed the $14 million Pūkenga Rau South Waikato Trades Training Centre where Toi Ohomai provides a range of programmes with a capacity to train and qualify 500 people a year.

In the last few years SWIFT has played a major role in upskilling and retraining South Waikato locals including funding driver licensing for all local rangatahi and supporting business start-ups and scholarships.

Mayor Petley said recent and upcoming business and housing development in South Waikato, have been facilitated by Council, and have created or will create new employment opportunities include:

• Olam Food Ingredients (OFI) new dairy processing facility in Tokoroa opened in 2023 creating about 50 full time jobs plus generating contracting work and more jobs are anticipated to be created in future stages of development. Singapore-based OFI is one of the world’s top three dairy suppliers.

• Ultimate Global Group’s $200 million 300+ home Overdale Estate development in Putāruru is creating work for local builders and enabling average Kiwi families to buy a new standalone three-bedroom house on a 600 square metre section for under just over $700,000.

• Strathmore Park, a 187-home development in Tokoroa, including about 30 affordable homes. South Waikato iwi Raukawa also has a 56-home development in Tokoroa.

• Maraetai Road Intermodal Business Park in Tokoroa, a $20 million development with 12 out of 13 industrial sites pre-sold off plan that is expected to generate over 200 new jobs in the district.

Mayor Petley said South Waikato is conveniently located at the tip of the Auckland, Bay of Plenty, Waikato golden triangle with road and rail access but much lower land and housing costs and commuting times for employees than Auckland, Tauranga or Hamilton.

He said the South Waikato District Council saw the Kinleith paper line closure as an opportunity for Government, Council and Iwi to co-invest and support the transformation of the district, while at the same time supporting individuals and families who have been directly affected by this decision.