Not one but two potential buyers are believed to be doing due diligence on the Whakatane mill.

The mill is poised for closure in July, making 210 workers redundant, but last week the mill's owner SIG announced an interested party had emerged, although it cautioned that the process may not be enough to save the mill.

Stuff now understands there are two parties doing due diligence, one a local entity which was close to finalising the purchase of the mill when an overseas firm threw its name into the ring.

It's believed one of the prospective buyers has interests in the recycling sector.

Union officials say news that the mill might be saved had been received with relief by many staff. Others had prepared themselves for redundancy or were already planning to move on.

Karl Gradon, general manager of strategy for Toi EDA, the Eastern Bay of Plenty's economic development agency, says it would make sense for the mill to head further into recyclable products.

"I think there is definitely a consensus that the products that the mill makes today are going to have to change.

"High value, food service, high growth, biogradeable, single plastic-replacing packaging is the right thing for it to be in. Is the way they are doing it today the most effective and efficient? Probably not and that's where any incoming investor is going to look.”

SIG declined to comment.

Local MPs and social services have been trying their best to find new jobs within the region, many of whom are skilled but who might struggle to find work locally.

Mayor Judy Turner: 'Whakatāne is resilient”. Rosa Woods/Stuff.

Whakatāne mayor Judy Turner said last Thursday that she was heartened by the news that the mill might continue operating.

'While it is too soon to know whether this proposal will progress further, it does provide a level of optimism for our continued goal of coming up with a long term, sustainable, profitable and environmentally efficient solution for the mill.

'I want to ensure agencies at a local and national level remain focused on working on potential solutions, and that mill workers are supported through this stressful time.

'Whakatāne is resilient, we are no stranger to challenges, and we will work together to solve this as we always do."

Catherine Harris/Stuff.