Nuplex Closes Four Factories, But Continues Manufacturing in Australia

September 25, 2012 • News

Nuplex Industries yesterday announced the streamlining of its Australia and New Zealand operations, which will see four facilities close and up to 80 jobs cut, the Australian reported.


Nuplex CEO Emery Severin said Nuplex remains committed to its customer value proposition of delivering cost competitive, innovative, quality products and security of supply by continuing to manufacture in Australia and New Zealand.

The restructure will see the company consolidate and upgrade the efficiency and flexibility of four of its existing sites: Penrose, Auckland; Botany, New South Wales; Wacol, Queensland; and Springvale, Victoria. Other sites at Canning Vale, Western Australia, Wangaratta, Victoria, and Onehunga, Auckland, will discontinue operations over the next two years. The high-temperature plant at Penrose, Auckland will also be closed.

“Over the past eight months we have undertaken a review of the markets we serve and made an assessment of how we can best supply our customers. It is likely that demand levels in both the manufacturing and construction sectors will be lower than in previous economic cycles as manufacturing customers and their customers continue to move offshore due to the impact of the ongoing strength of the Australian and New Zealand currencies. In construction, whilst activity will recover at some point, demand conditions remain subdued,” Mr Severin said.

Nuplex revealed the progressive closure of the sites over the next two years will incur redundancy costs of NZ$3.95 million, write-downs of obsolete equipment estimated at NZ$8.05 million, and provision for site clean-up and remediation of NZ$4.35 million. The investment to upgrade the Australian sites at Botany, New South Wales and Wacol, Queensland will be approximately NZ$13.0 million which will be spent evenly over the next two years.

Mr Severin said Nuplex is aware of the impact the changes will have on affected employees, with the company insisting the changes are necessary to ensure the long-term sustainability of the business. Nuplex will be consulting with affected employees and their representatives over the next few weeks.


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