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

 


Nufarm to close Auckland plant, shift local production to Oz

Nufarm to close Auckland plant, shift local production to Australia, taking A$11M charge

April 15 (BusinessDesk) - Nufarm, the agricultural chemicals manufacturer, will close its New Zealand manufacturing plant in Auckland and shift regional production to a plant at Laverton, in the Australian state of Victoria.

Consolidating production will generate annual cost savings of A$3 million and result in the elimination of up to 59 jobs at the Otahuhu, Auckland factory, Nufarm said. It will take an A$11 million charge in the current year for restructuring costs.

The company expects the eventual sale of the Otahuhu site to generate a profit of A$10 million

The Auckland plant closure will bring Nufarm’s total restructuring costs in Australia and New Zealand to A$50 million. Overall savings were put at about A$16 million a year.

The company, which makes herbicides and pesticides, announced plans last month to close manufacturing plants at Welshpool in Western Australia and Lytton in Queensland. It would also close six facilities in a reorganisation of its network of regional service centres and warehouses, cut jobs in support and administration, and move to a new management structure.

The transfer of manufacturing from New Zealand to the Laverton factory in Australia “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,” it said.

Shares of Nufarm last traded at A$3.99 on the ASX and have declined 4.1 percent in the past 12 months.
The shares are rated ‘hold’ based on the consensus of 32 analysts polled by Reuters, with a median price target of A$4.55.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news