Electrolux to close Christchurch plant

12.40pm

Household appliance manufacturer Electrolux today confirmed its Christchurch plant would gradually close over the next 14 months, making 150 workers redundant.

Manufacturing director Leon Andrewartha said wall oven production would stop in September, cooktop production in December, and electric stove production by October 2005.

Those products would manufactured at the firm's cooking products plant in Adelaide, where its plans to invest a further $20 million in new plant and product development.

Mr Andrewartha described the decision as regrettable but logical in a statement.

"Unfortunately for Christchurch, the Electrolux cooking products plant in Adelaide, South Australia has a broader product range and significantly larger production capacity," he said.

"This makes it the logical location for consolidating our on-going investment in cooking manufacturing in this part of the world."

Each day, the Christchurch plant produced about 300 electric stoves, wall ovens and ceramic cooktops for trans-Tasman markets, compared with the Adelaide plant's more than 2000.

Mr Andrewartha said all 150 workers, including 25 part-time employees, at the Christchurch plant would lose their jobs.

All redundancy obligations would be met, while the company would offer employment and financial advice to its workers.

The manager of the Christchurch plant, Mark Barnes, said workers were philosophical about the pending closure.

"I think the majority of them have known its been going to happen for some time... (but) when the date's been set its big shock," Mr Barnes said.

After the Christchurch plant closed, Electrolux' only presence in New Zealand would be an Auckland-based sales office.

- NZPA