F&P review at Mosgiel brings job cuts to 59

Eighteen engineering-related jobs have been axed at Fisher & Paykel Appliances' Mosgiel plant.

This brings the total number of redundancies to 59 after similar layoffs in the past month at the Tamaki plant in Auckland.

Paul Brockett, vice-president of investor relations, said yesterday that an unspecified number of the Mosgiel redundancies were voluntary and a small number had already left from its maintenance and design divisions.

The review was prompted by the $158 million purchase of Italian manufacturing company Elba, which meant designs were available from Italy.

Some Italian-made components were now being used in assemblies at Mosgiel, which also cut back on the need for some manufacturing.

Research and development at Mosgiel would not be affected by the redundancies, with a new product being launched early next year, he said.

Brockett forecast that during the next six to 12 months unit production from the Mosgiel plant was expected to hold or increase slightly.

The rising cost of raw materials had prompted reviews of all Appliances' divisions, but no other divisions at Mosgiel had been identified for potential redundancies.

- OTAGO DAILY TIMES