Two North Island mills have failed to strike a deal to save their operations.

Winstone Pulp International announced its pulp and saw mills in the Ruapehu District will close indefinitely, putting more than 200 people out of work.

Ruapehu mayor Weston Kirton says they'd been talking with Government Ministers and electricity providers trying to save the mills, but with no luck.

He says he's devastated.

"We've had our ups and downs, as you know, but this is a big hit. I'm really taking it personally."

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