KEY POINTS:
The news that Fisher & Paykel Appliances is to build a new $15 million dishwasher manufacturing plant sounds like a great shot in the arm for the local economy.
Only trouble is - the plant is to be built in North America.
The Auckland-based company announced the move today, having earlier this year moved to close two operations in this country with the loss of nearly 450 jobs.
The decision to build a new DishDrawer plant was in response to continuing North American sales growth, the company said.
The plant was expected to be finished by late-2008 with first production in early 2009, although its location was yet to be decided.
It would produce a new DishDrawer model, designed specifically for the North American market.
"Our supply philosophy is to have small, efficient, manufacturing plants, in or close to the markets we participate in," Appliances chief executive John Bongard said.
"This facility will supply our North American markets in a timely fashion, whilst at the same time reducing freight and working capital costs."
The US was the largest market for the DishDrawer.
The present DishDrawer factory in Dunedin would continue to manufacture products for other markets, including New Zealand, Australia and Europe.
In August, Appliances said it was relocating its electronics factory from Auckland to Thailand with the loss of 96 jobs.
That followed an announcement in April that 350 jobs were to go in Auckland with a decision to move the company's laundry plant, also to Thailand.
At that time Mr Bongard blamed a combination of factors including high interest rates, persistently high exchange rates, and some trade and tariff policies.
Appliances' shares were down 5c to $3.52 around noon today, having traded between $4.18 and $3.31 in the past year.
- NZPA
