Confirmation of manufacturing consolidation

In line with its 13 April proposal to consolidate its manufacturing operations in Napier, Whanganui and Christchurch and having now completed the staff consultation process, Cavalier Corporation confirms that it will be proceeding to implement the following:

In line with its 13 April proposal to consolidate its manufacturing operations in Napier, Whanganui and Christchurch and having now completed the staff consultation process, Cavalier Corporation confirms that it will be proceeding to implement the following:

  • Consolidation of woollen yarn spinning operations (currently in Napier and Whanganui) to a single hub at the Napier plant
  • Down-scaling of the semi-worsted yarn spinning operations in Whanganui
  • Relocation of felted yarn operations from Christchurch to Whanganui
  • Closure of the Christchurch plant

This will result in approximately 65 net job losses across the Group, and we will be actively working with impacted staff on redeployment and external employment opportunities.

As stated previously, consolidation of the Group's yarn spinning operations will significantly reduce the cost base of all yarns produced allowing the business to be more efficient and competitive. This aligns with the overall strategic plan and will aid in returning the business to acceptable levels of profitability.

This is a difficult time for staff affected by the consolidation, and we acknowledge their ongoing support to work through this with us.

 

Paul Alston

Chief Executive Officer

For and on behalf of the Board of Directors

For more information regarding this announcement, please contact Lenska Papich on 021 410 496 or lpapich@cavbrem.co.nz

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