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

 

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO: