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A business advocate is concerned about the knock-on effect from the closure of the Whakatane Mill.
Management have told staff just over 210 staff will be made redundant.
Most will be out of work before the end of June.
Employers and Manufacturers Association CEO Brett O'Riley told Mike Hosking the mill is part of an forestry "eco-system" in the Eastern Bay of Plenty.
He says without the mill, the whole system could unravel, and other jobs and businesses could also be at risk.
O'Riley says the business had been looking for a buyer for a couple of years.
He says the government left the business in the lurch.
"The Government has been well aware of the mill's challenges, but not a lot has been done to help them transition to a new mode."
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