Wellington factory to lock its doors

Assa Abloy - the world's largest lock maker - will close its Wellington factory at the end of the year and move production overseas, at a cost of about 200 jobs.

The planned closure of the Interlock Group factory within the next two or three years was announced in 2004.

But the Miramar-based company said it was accelerating its closure timetable, blaming market pressure and the difficulty of closing the factory in stages.

Of the 270 jobs at Interlock, 200 will be axed, including all 140 manufacturing positions.

More than 50 office-based positions will be moved to either the company's Albany site or Australia and the United States. About half the manufacturing will go to Auckland and the rest overseas, mainly to China.

"The high New Zealand dollar and current market conditions are working against us," said vice-president for Australia and New Zealand D'Arcy Quinn.

Quinn said competitors were able to offer products for the cost of Interlock's raw materials.

The first layoffs would probably begin late next month, Quinn said, but the rate at which jobs will be cut has not been determined.

Workers at the plant will get a union-negotiated redundancy package, which includes help in finding new jobs.

Quinn said the staff reaction was one of "general acceptance. We've kept staff well informed about why we've made these decisions".

Interlock, which won an exporting excellence award in 1992, was founded in Breaker Bay in 1961. It was bought by Swedish lock manufacturer Assa Abloy in 2001, and its name changed to Assa Abloy New Zealand in December last year.

- NZPA, BLOOMBERG