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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news