It said it was pressing on with plans to cut production of plywood and laminated timber products. The company said it had been affected by falling demand in the Japanese housing market and it could not afford to keep losing money on the plant.

New Zealand general manager Dave Hilliard said it looked at suggestions for sustaining the business, including producing for the local market, but the investment needed to upgrade was too much.

All staff had redundancy pay provisions in their contracts, he said.