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Croxley confirms it will cease manufacturing

Croxley confirms it will cease manufacturing

Croxley Stationery today confirmed that it will cease manufacturing over the next nine months and build its future as a dedicated wholesaler.

The iconic New Zealand stationery and office products supplier announced a fortnight ago that it was consulting staff on a proposal to cease manufacturing owing to a range of external factors.

Managing Director David Lilburne today paid tribute to staff who will be affected by the change, which will see close to 100 people made redundant between now and the middle of next year.

“Today more than anything our hearts go out to the affected staff and their families. These are people who have been part of the Croxley family for a long time and I am truly sorry that it has come to this.”

He says the manufacturing team have done an outstanding job and could not possibly have done anything to change the situation.

“We are working individually with our people to support them as much as we can through the transition 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 key factors contributing to the decision include a decline in postal use and demand for traditional paper-based products with emails replacing envelopes and writing paper; the widespread availability of cheap imported products; the strength of the New Zealand dollar which impacts on Croxley’s ability to successfully export products manufactured locally; and the fact that investing in new manufacturing machinery in a declining market simply doesn’t stack up.

Croxley’s envelope production is likely to wrap up between now and the end of the year with other areas of manufacturing to follow in the first half of 2015.

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.

Mr Lilburne says as the company moves to becoming a dedicated wholesaler it will look to broaden and update its product range to meet the changing needs of the market.
“We will continue to work with our valued customers to ensure supply continuity for the products they source from Croxley.”

“While today is a sad day, this decision is certainly not the end for Croxley. It is a new beginning.”

- Ends –

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