Cavalier Corporation announce proposed consolidation
13 April 2015
Cavalier Corporation announce proposed manufacturing consolidation
Cavalier Corporation has today commenced consultation with its manufacturing staff in Christchurch and Whanganui in relation to a proposed consolidation of its carpet operations.
To realise greater efficiencies Cavalier is proposing to consolidate its woollen yarn spinning operations into a single hub at its Napier plant, shift its felted operations to its Whanganui plant and close its Christchurch operation.
It is estimated this will result in approximately 65 net job losses across the whole company, however this cannot be confirmed until staff have been properly consulted and the process is completed.
Cavalier Corporation CEO Paul Alston says the proposed changes come following an extensive review of Cavalier’s manufacturing processes and on the back of decreasing demand for woollen carpet.
“Demand for woollen carpet has decreased over the last decade and as a result we now have excess wool spinning capacity across our Whanganui and Napier plants. In addition, we have felted yarn capacity constraints at our Christchurch plant.”
Alston says the proposed changes are part of the company’s transformation programme to be more competitive.
“Cavalier remains absolutely committed to manufacturing in New Zealand, however we need to be efficient in how we go about it.”
Alston says the business is very aware of the impact the proposed changes will have on staff and where possible will be offering relocation opportunities.
“This will be tough for all of our staff, particularly the impacted ones, but we need to futureproof our business to provide on-going stability and profitability.”