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Whiteware manufacturer Fisher & Paykel Appliances (FPA) has announced plans to relocate its electronics factory from Auckland to Thailand.
The company said 96 jobs would be lost but it would save around $6 million a year before tax, for a one-off pre-tax cost of $5 million.
Production of electronic circuit boards used in Fisher & Paykel appliances would be located in Rayong, Thailand, the same site as FPA's proposed new laundry plant.
In April the currency-sensitive company said it would shift its washing machine factory to Thailand, cutting 350 jobs.
The company expects the electronics relocation will take until the end of next year.
FPA said it would use temporary working capital of between $2-3 million to cover extra inventory needed during the transfer.
Additional cost savings were also anticipated from sourcing electronic components in Thailand.
Chief executive John Bongard said it had become obvious that the future of its electronics unit lay in close proximity to the laundry unit, which was on track to open in Thailand in March next year.
He said the company would try to relocate as many staff as possible to other areas of the business.
Shares in FPA fell 8c to $3.49 in mid-afternoon trade today.
- NZPA
