Nufarm Otahuhu factory to close, 59 jobs to go

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Nufarm's Managing Director, Doug Rathbone.
Nufarm's Managing Director, Doug Rathbone.

Nufarm Limited has announced today that, following a review of its New Zealand manufacturing operations, it will close the facility at Otahuhu, near Auckland.

Up to 59 New Zealand based manufacturing related positions will be affected by the planned changes.

The closure of the New Zealand facility and associated transfer of production activity will be undertaken over a two year period.

Eventual sale proceeds associated with the Otahuhu site are expected to result in a profit on sale of up to $10 million.

The transfer of manufacturing activity from New Zealand to expanded facilities at Laverton will increase the utilisation and efficiency of those facilities; will result in lower unit costs; and will reduce the region's maintenance related capital expenditure and working capital requirements.

Nufarm's Managing Director, Doug Rathbone, said the NZ changes include a larger logistics presence that will ensure that the company continues to effectively service its New Zealand customer base.

"We will maintain a development laboratory in Auckland to support both local and global product innovation and we will retain our North Island warehouse facilities.
In addition, we will expand warehouse and logistics support in the South Island to support our growing business in the south.

"These changes will result in a more efficient regional business that will continue to meet New Zealand based customers' requirements around reliability and flexibility of supply and a high quality product portfolio developed for local New Zealand conditions," said Mr Rathbone

- The Aucklander

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