Nuplex restructure sees jobs cut
Nuplex Industries is shutting four plants and cutting jobs in New Zealand and Australia, saying the move is needed to ensure long-term sustainability.
No detail was available on the exact number of jobs that would be lost, but Nuplex said the closure of sites over the next two years will result in redundancy costs of $3.95 million.
Nuplex employs 800 people across Australia and New Zealand and BusinessDay understands about eight per cent of the workforce - or abuot 64 jobs - will be cut.
Chief executive Emery Severin said while the firm was "very aware" of the impact the move would have on affected staff, the changes are "necessary to ensure the long-term sustainability of the business".
The firm said it would be winding down the Canning Vale and Wangaratta plants in Australia over the next two years, while in New Zealand the Onehunga plant and a high temperature facility at its Penrose base would be progressively shut down.
The company will consolidate production and upgrade capacity at its existing Australian sites in Botany, Wacol, and Springvale, and its other Penrose site in Auckland.
The announcement comes after an eight-month market review, which showed demand for the company's chemical and resin products was likely to be lower than in previous years, made worse by the high level of the New Zealand and Australian currencies.
"We concluded that through streamlining our manufacturing network and investing to maximise the capability of our remaining operations, we can align our cost base to competitively produce our products in Australia and New Zealand," Severin said.
- © Fairfax NZ News