Fletchers closes Spanish formica factory

Last updated 10:20 29/06/2012

Relevant offers

Industries

McDonald's New Zealand keeps eye on all day breakfast trial in US Liquidators consider suing Albany Heights lawyers Canterbury mayors attack Air New Zealand plans Hillend managers won't face charges after smoky burnoff on Sam Morgan property Air New Zealand ends Christchurch Tokyo flights Supermarkets stay vigilant over 1080 baby formula threat Kirkcaldie & Stains appoints Philip Shewell as acting CEO Logging firm Waimea Contract Carriers calls in administrators Proposed Wellington air control tower to lean into wind Shopping laws rile retailers

Fletcher Building will merge its two Formica factories in Spain after a review of operations in that country.

Mark Adamson, chief executive of Fletcher's laminates and panels division, said the 66-year old Formica plant in Bilbao would close, leaving all manufacturing to the Valencia plant.

He said there was significant overcapacity in Formica's Spanish operations, at a time when volumes over the past four years had dropped markedly.

''We remain committed to manufacturing in Spain and, by rationalising our operations, this will allow Formica to remain competitive in what is still a very tough economic climate.''

Fletcher expects to incur a one-off cost of $26 million from the Bilbao closure in its 2012 financial results, but the consolidation is expected to improve pre-tax earnings for Formica Europe by about $8-9 million in the second year.

The company was talking to 180 staff in Bilbao to try and find alternative work for them within the group.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content