Fisher & Paykel closes NZ fridges factory

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This was published 7 years ago

Fisher & Paykel closes NZ fridges factory

Updated

Fisher & Paykel Appliances is to close its East Tamaki, Auckland, factory, affecting almost 200 staff.

The plant manufactures a range of small refrigeration products.

Fisher & Paykel fridges and shipping container were found washed up on Shelley Beach on the NSW Central Coast in 2014.

Fisher & Paykel fridges and shipping container were found washed up on Shelley Beach on the NSW Central Coast in 2014.Credit: Debbie Krogh

E Tu union spokesman Bill Newson said the potential for the closure had been hanging over the company for some time but the decision had come as an "absolute shock" to the workforce. "There were some pretty stunned people today."

The factory currently operates four days a week and employs 186 staff. A two-stage approach is being considered, with phased closures likely in July and November, and factory decommissioning thereafter.

Managing director and chief executive Stuart Broadhurst said the company hoped to redeploy staff where it could.

"We are committed to finding suitable alternative employment wherever possible, rather than have people leave through redundancy. As needed we will also be working with third parties, including government agencies, to provide support for staff and their families.

"We will also be liaising with our external suppliers and retailers about how best to navigate this period of transition."

But Newson said it seemed likely a large number of people would be out of a job. He said only a small operation would be left.

Broadhurst said the decision was no reflection of the calibre of staff.

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"The business has enormous respect for this team – past and present. Until now the factory's staff have staved off the inevitable. However, the harsh reality is this factory is no longer sustainable due to the lack of scale and cost-competitiveness the facility and its products face in today's global whiteware marketplace.

"This factory would have closed much earlier, rather than experience a series of downsizings over recent years, if not for the loyalty and commitment of this team."

Broadhurst said that while the planned closure was sad for Fisher & Paykel because of its long history of manufacturing in East Tamaki, it was sadder for the staff themselves and their families.

"Although it has been on everyone's radar for a considerable period, we recognise this does not diminish the shock of this announcement at a personal level.

"Because of this factory's proud history and the efforts of all the staff involved, this has been a very tough decision, although we expect it will come as no surprise to those familiar with manufacturing in the whiteware business."

Fisher & Paykel will continue to produce specialist componentry and production equipment in New Zealand, but will no longer operate this type of consumer whiteware manufacturing.

In future, upgraded models of some of these refrigeration products will be manufactured utilising existing capacity at Fisher & Paykel's plant in Thailand and through the wider Group in China.

Newson said New Zealand faced a problem because the jobs that were being lost were high-value. "While it is true there are new jobs being created in the economy, the new jobs tend to be low paid, if not minimum wage, and casual or part-time. The issue is what are we doing as a country to tackle the challenge of creating high-value manufacturing jobs for the future?"

Kim Campbell, chief executive of the Employers and Manufacturers Association, said it was disappointing but not surprising.

"Appliance manufacturing requires big volumes."

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