Associate Energy Minister Shane Jones is calling the possibility two mills could close - 'hideous' - with the loss of 300 jobs.

Winstone's says ballooning energy bills could force the Ohakune pulp and timber mills to shut.

Jones is urging the energy companies to offer these industrial players a deal to keep them going. 

"My problem is - if they don't start to engage and actually look after New Zealand firms and New Zealand employers, then I fear for the industrialisation." 

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