70 jobs lost as Auckland factory closes

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Up to 85 people will lose their jobs at textiles factory Norman Ellison Carpets in Auckland.

NZX-listed Cavalier Corporation has advised staff this morning that the Onehunga plant will close on July 26.

Textile workers' union FIRST said 85 jobs would go.

However Cavalier said the net loss of jobs would be 70. Eight staff from the yarn spinning plant would transfer into Norman Ellison's tufting plant, and it was hoped that at least a dozen of the spinning staff would relocate to other plants within the group, the company said.

Cavalier's managing director Colin McKenzie said the decision was made after a thorough review process involving the group's three woollen yarn spinning plants.

There had been over-capacity at the plants "for some time" and rationalising its operations was the only responsible option to balance that, he said.

Last October, Cavalier announced it was cutting 42 jobs. Twenty-two of those included management positions at its Wiri, Napier and Whanganui mills. The other 20 jobs went at Norman Ellison Carpets.

FIRST Union said the closure was a huge loss and served as an urgent wake-up call to the government to be more proactive in supporting manufacturing.

Earlier this month Summit Wool Spinners, 100 per cent owned by Japanese company Sumitomo Corporations, said it would cut 49 jobs at its North Otago Wool Plant.

- © Fairfax NZ News