Nestle Plant Closure "Sad"-Eckhoff

Friday 3rd Nov 2000 Gerry Eckhoff Media Release -- Economy

The closure of the Nestle plant in Oamaru was a sad day for the North Otago Town, ACT MP and Otago resident, Gerry Eckhoff said today.

The company has announced it will be closing the moulded confectionery plant in six months time and re-locating the operation to Victoria Australia, with the loss of 48 jobs.

“This will be hard for Oamaru and the 48 families affected, but is has also been a hard decision for Nestle,” Mr Eckhoff said.

The company said over capacity was the main reason behind its decision to consolidate some production activities in Australia but it would continue to grow its business in New Zealand through its Auckland and Marton sites.

“The company is to be commended for giving six months notice and for its level of support for its Oamaru staff,” Mr Eckhoff said.

“The big issue now for Oamaru – and other similar rural towns – is what business opportunities are there to replace companies like Nestle?”

He said he would be keeping a close watch on the situation, but doubted if the regional development plans promoted by “The Great Helmsman” (Deputy Prime Minister Jim Anderton), will do very much to replace “real businesses” like Nestle in towns like Oamaru.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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