Plant, jobs to go at Washdyke

More South Canterbury workers have become casualties of a stuttering economy, with PlaceMakers now intending to shut its timber frame and truss plant in Washdyke.

It is just over a year since the plant opened to cater for the building boom.

The company said its decision, which would leave eight fulltime workers redundant, was a response to continued falling local demand and the centralising of PlaceMakers' Canterbury manufacturing.

The plant is expected to close at the end of next month. Affected staff will be offered the opportunity to take on similar positions in Christchurch.

PlaceMakers Timaru joint venture operator Mervyn Evans said he was disappointed with the decision but it was unlikely the plant could remain competitive with the continued reduction in building starts.

"The building sector has changed dramatically since the plant was planned in early 2007.

"Our focus has to be on servicing our customer's needs efficiently and profitably and unfortunately this facility is no longer viable."

The closure would not impact on staff at PlaceMakers Timaru or Twizel, Mr Evans said. All future orders for the South Canterbury market would be produced at PlaceMakers in Christchurch.

National's Rangitata MP Jo Goodhew said last night that the news had come as a surprise, only learning about it when contacted by The Herald.

"I'm absolutely shocked, disappointed and saddened for the staff who were made redundant. I'm hopeful that they will soon be able to find work in the region."

Mrs Goodhew was at the plant's opening last year.

It was a sad realisation that the economic slowdown was clawing its way further south, she said. While the Rangitata economy was still performing reasonably well, "if you're the one made redundant it's not a good feeling".

It was confidence in building economy which saw the plant come to fruition.

It was officially opened on February 28, 2008 and contained more than $250,000 of specialised equipment.

Mr Evans said then that the investment gave Timaru one of the most modern plants in New Zealand.

At full production it was capable of producing a house a day in terms of trusses and framing with the work customised to builders' needs.

Mr Evans said the factory could support Placemakers in Oamaru and Ashburton.

In terms of the builders themselves, by using the plant it could save them five days in terms of constructing a house. He decided to take the plunge in response to the increased demand, he said.

Before the plant opened trusses and frames had been made under contract by McRaeway Homes.