Nufarm to close manufacturing facility in New Zealand

VICTORIA, AUSTRALIA: Nufarm Limited will close the facility at Otahuhu, near Auckland, New Zealand and further consolidate regional manufacturing activity at its existing Laverton (Victoria) facilities. The closure is following the review of New Zealand manufacturing operations. The additional rationalisation of manufacturing activity is expected to result in annualised savings of $3 million, bringing total regional savings to approximately $16 million when all changes are fully implemented.

The closure of the New Zealand facility and associated transfer of production activity will be undertaken over a two year period. Up to 59 New Zealand based manufacturing related positions will be affected by the planned changes. The transfer of manufacturing activity from New Zealand to expanded facilities at Laverton 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.

“We will maintain a development laboratory in Auckland to support both local and global product innovation and we will retain our North Island warehouse facilities. In addition, we will expand warehouse and logistics support in the South Island to support our growing business in the south. These changes will result in a more efficient regional business that will continue to meet New Zealand based customers’ requirements around reliability and flexibility of supply and a high quality product portfolio developed for local New Zealand conditions,” said Doug Rathbone, Managing Director, Nufarm.

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