Norske Skog has shut operations for the day at its Tasman paper mill in Kawerau, in order to consult employees about cost reduction and restructuring plans.
The company says the main reason for closing the plant on Thursday is so all employees could be involved in a presentation and discussion on achieving profitability.
Norske Skog says a worldwide decline in the newsprint market has resulted in a global over-supply of paper and the strength of the New Zealand dollar is making trade difficult.
The company says many mills are closing or curtailing production and it needs to find alternative markets.
The Tasman paper mill, the largest in New Zealand, is currently awaiting the outcome of a resource consent application. Norske Skog wants to continue discharging effluent into the Tarawera River for the next 35 years.