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Fletcher Building is to close its plant in Penrose, Auckland, with the loss of 65 jobs.
The factory, which produces hardboard and softboard, has had poor financial returns in recent years due to the high exchange rate and reduced export earnings, chief executive Jonathan Ling said.
Having to invest more money in the plant to enable it to meet environmental standards meant the business was no longer viable, he said.
The company had already started talks with the 65 affected workers.
Mr Ling said the closure would not have any adverse ongoing effect on Fletcher Building's operating earnings.
AUSTRALIAN PURCHASE
Fletcher Building also today announced it had completed the purchase of the Australian-based AG&S Building Systems and Hi Tech Pty Ltd, which trades as Fair Dinkum Homes and Sheds (FDHS) -- a pre-engineered building distribution network.
Its gross revenue was about $10 million, Fletcher Building said.
Stramit, part of Fletcher Building's steel division, has had a long term relationship with FDHS with its distributor network being Stramit's largest customer group.
The acquisition positioned Stramit as the market leader of pre-engineered buildings in the Australian market worth $600 million a year, Fletcher Building said.
Fletcher Building shares rose 17c to 1233.
- NZPA
