Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Closure Of Upper Hutt Factory Under Discussion

Proposed Closure Of Upper Hutt Factory Consultation

Upper Hutt, New Zealand, 30 June, 2006…South Pacific Tyres has announced it has initiated consultation with unions and employees about proposals to move from seven to five days production at its Upper Hutt factory, and ultimately to withdraw from tyre manufacturing at this factory.

While the details of the proposals will be discussed with unions and employees before being finalised, at this time, the company envisages the proposed move from seven to five days production to occur over two months, and the proposed closure to be within six to eight months.

SPT Country Manager (New Zealand) Wayne Johnston said these proposals are a result of:
• a declining local market for tyres made in Upper Hutt (just 30% of Upper Hutt’s capacity is for domestic consumption) - this has led to excess production capacity;
• the installed capacity of the factory being for predominantly low value-added tyres which attract the lowest margins and most competitive pricing; and
• ongoing strategic efforts by Goodyear, which owns SPT, to reduce high-cost capacity worldwide.

“The pressures on the factory have been compounded over time by materially adverse foreign currency movements, which have further eroded already thin margins, a 30% rise in energy costs over the past three years, and the previous loss of the nation’s automobile assembly industry, which was once a significant market for SPT,” Mr Johnston said.

“All of these factors have combined to compromise the viability of tyre manufacturing for SPT in New Zealand,” he added.

SPT remains committed to the consumer and commercial tyre markets in New Zealand and, if the proposed closure is implemented, would supply customers with Goodyear products from its plants in the Asia Pacific region.

SPT appreciates the potential economic and social impacts of these proposals for the Upper Hutt region, and will collaborate with all stakeholders throughout the consultation process.

Ends…

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news