Dunedin knitwear firm announces closure

A second Dunedin company has announced it is closing down with the loss of jobs.

Knitwear manufacturing plant Tamahine Holdings Ltd said today it would shut its doors on July 4 with about 50 staff being left jobless.

Earlier today Fisher & Paykel Appliances announced it was closing its Dunedin factory with 430 employees being made redundant.

Tamahine chairman Trevor Scott said the factory had been running since 1970, but over the past 20 years it had battled to cope with a deregulated market which allowed a "flood of low cost Asian imports".

This had been exacerbated by the recent Free Trade Agreement with China and the high New Zealand dollar, Mr Scott said.

"After exploring all possible options the directors have decided with regret and sadness that it is unsustainable to continue manufacturing in New Zealand."

Mr Scott said about 50 jobs would be lost after the factory permanently closes on July 4.

"It is sad to see another iconic New Zealand manufacturer closing its local production.

"We all gave it our best shot," he said.

Plans were underway to sell Tamahine's Intellectual Property including brands and designs.

The company was behind the brands McKenzie Country, Katie Cullen and Jackson Bay.

- NZPA