First of more than 500 job cuts kick in at wheel plant

The first of more than 500 job losses associated with the planned closure of an alloy wheel manufacturing company in Wiri will come into effect this week as 25 salaried staff finish work.

Ion Automotive is gradually laying off its workers after failing to find a buyer since the company's Australian-based parent Ion Ltd was placed into voluntary administration.

Neil Campbell, the general manager of the Manukau City plant, said 25 technical, administrative and engineering staff would end work this week.

The jobs of a further 50 staff would end around October but the bulk of the production staff would likely remain on site for at least another year while existing contracts were finished.

Mr Campbell said yesterday that the firm was still for sale but issues like the high value of the New Zealand dollar and tough competition from Asian countries continued to make it difficult to find a buyer.

The company had been making high-volume automotive wheels, underbody components and a small volume of motorcycle wheels.

Its major customers included Ford US and Ford Australia, and the facility, which was formerly owned by Ford, had been making aluminium wheels for the past 20 years.

Mr Campbell said he was hopeful the staff would find new jobs in the current climate as they had transferable skills. "The prospects for them are pretty good."

About 90 per cent of the workers had been on permanent contracts. Of the staff, 65 were salaried and 467 paid on an hourly basis.

Andrew Little, national secretary of the Engineering, Printing and Manufacturing Union, said he was concerned about the situation but could not comment further at this stage.