Kawerau is a small community, with an economy that is largely driven by the nearby pulp and paper mill that is run by Norske Skog and OJI Fibre Solutions.The site for the mill was chosen by the Tasman Pulp and Paper Company because of the ready availability of geothermal energy,[4] water from the Tarawera River and the large supply of pine timber from the nearby Kaingaroa Forest.The town's population peaked in the early 1980s (8718 in the 1981 census) but has declined significantly since then due to the restructuring of the mill and of associated industries.[9] Norse Skog of Norway, which is the world's second-biggest producer of newsprint, confirmed the closure of one of its two paper machines at the Tasman Mill at Kawerau with the loss of 110 jobs.Norske Skog management would work closely with employees, unions and other stakeholders on the detailed closure arrangements, including a mill-wide restructuring programme.Peter McCartey, General Manager of Tasman Mill said it was widely understood the decision had been brought about by global market forces within the industry.Norske Skog has the widest geographical spread of all the paper producers, with mills in 11 countries on all continents except Africa.[14] The 820 metres (2,690 ft) volcanic cone of Mount Edgecumbe/Putauaki lies 3 kilometres (1.9 mi) to the east of Kawerau, and is easily visible from the town.In winter (July to August) crisp early morning frosts are usually followed by clear, sunny days, and the average daily maximum temperature is around 15.6 °C.The competition has now developed into a broader range of attractions which captivates many skills from the Forestry Industry and now takes over the town for the weekend, in what is known as Kawerau Woodfest.
Plunket Street in the town centre during the 2009 Christmas Parade.