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

 


Croxley proposes ceasing manufacturing to focus on wholesale

MEDIA STATEMENT

Croxley proposes ceasing manufacturing to focus on wholesale

Thursday, 21 August 2014

Iconic New Zealand stationery supplier, Croxley Stationery, today announced that it is considering ceasing manufacturing at its Avondale factory from next year in favour of continuing as a dedicated wholesaler.

Croxley announced the proposal to staff today and outlined a staff consultation process which will take place over the next two weeks.

Managing Director David Lilburne says the manufacturing team have made an incredibly valuable contribution to Croxley’s success and have done an outstanding job adapting to change and difficult market conditions.

“I’m truly sorry for our staff that it has come to this but there are a number of external influences that have forced our hand,” he says.
“We are operating in an environment which has seen a decline in postal use and a reduction in demand for traditional paper based office products,” he says. “Emails have replaced envelopes and writing pads.”

“The widespread availability of cheaper imported products is also a factor as is the foreign exchange rate which impacts on our ability to successfully export products manufactured here.”

Mr Lilburne says significant capital investment in machinery would be needed to continue producing traditional stationery items, such as envelopes, and that simply doesn’t stack up in a declining market.

If the proposal goes ahead, the change could result in the loss of over 100 jobs at Croxley’s Avondale factory.

“This is not a proposal we have put forward lightly. We have fought hard to remain in manufacturing in a difficult market,” Mr Lilburne says.

“We looked for alternative solutions but in the final analysis, the long term future of manufacturing at this site does not appear to be sustainable.”

He says Croxley has announced the proposal at this time, and expect to make a final decision by Thursday 4th September.

“We will be working with affected staff individually to assist them through the process. We have a long history of looking after our staff and we will continue to do the right thing by them and their families.”

Mr Lilburne says once a final decision is made, Croxley will also work with its valued customers to ensure there will be no interruption to their supply of products they source from Croxley.

“We are effectively proposing a move from being a wholesaler with some locally manufactured products to being a broad based wholesaler. As well as continuing the supply of our existing product range we would look to broaden and update our product offer to meet the changing needs of our customers.”

If the proposal goes ahead, the company will take a phased approach to ending its manufacturing operations between now and the middle of next year.

Croxley has almost a century of history behind it and is currently the country’s largest stationery wholesaler, supplying a broad range of products to the office and education sector.

Croxley
Croxley is New Zealand’s largest stationery wholesaler and with a history in New Zealand that stretches back almost 100 years. Croxley’s iconic brands such as Olympic, Warwick and Collins are the stories of New Zealand pioneering entrepreneurs and businesses. Over time these household brands have held various associations, gone through mergers and been bought and sold. However they now all reside under the umbrella of Croxley. Croxley is a subsidiary of United States based Office Depot Inc.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news