Fletcher closing another factory

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The global recession continues to take a toll on Fletcher Building with the company set to close another factory, this time in Western Australia.

Fletcher said today its Laminex subsidiary was closing its medium density fibreboard (MDF) plant in Welshpool, Perth which employs 114 people.

The factory, which also produces veneers, low pressure laminate, and process panels and bearers, supplies both its domestic and Asian markets.

"Due to reduced demand and over-capacity in the industry, it is proposed to consolidate MDF manufacturing at the larger and more modern plant in Gympie," Fletcher said.

Today's announcement comes just weeks after Fletcher announced - on June 5- it was shutting a particleboard factory at Kumeu, west of Auckland that employed 41 staff. The building materials manufacturer and distributor also blamed that closure on reduced demand and over capacity.

The National Distribution Union said the closure of the Kumeu factory was confirmed to workers at a meeting today.

MDF manufacturing at Welshpool will end on July 24. Fletcher said customers would not be affected by the change.

- © Fairfax NZ News