Evowood director Nkosinathi Nhlangulela said yesterday that the Estcourt-based mill, which provided products to a range of construction-related markets, ceased operations earlier this month after having consulted staff.
It was the town's biggest employer.
The closure resulted in the loss of 460 permanent jobs as well as temporary jobs.
He said the company, which had been placed in business rescue by its international parent company in December 2015, initially had a promising future. It was acquired by the Timber Investment One consortium, which was eager to implement a business turnaround strategy based on a R300million cash injection.