Cost surge and weak demand put New Zealand timber industry under pressure

Posted on August 27, 2025   |  

New Zealand’s timber industry is under pressure, facing weak demand, rising costs, and global instability from wars and tariffs.

Carter Holt Harvey will close its Eves Valley sawmill near Nelson, consolidating operations in Kawerau, Bay of Plenty.

The closure will result in the loss of 142 jobs.

Building consents have fallen sharply, dropping from 51,000 in 2022 to 34,000 in the year to June, further weakening demand.

Higher electricity, compliance, and insurance costs have added to sawmill struggles, while overseas markets remain volatile.