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- Release Date: 15/04/14 13:08
- Summary: ASSET: NFF: Nufarm to Close NZ Manufacturing Plant
- Price Sensitive: No
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NFF
15/04/2014 11:08
ASSET
REL: 1108 HRS Nufarm Finance (NZ) Limited
ASSET: NFF: Nufarm to Close NZ Manufacturing Plant
Nufarm Limited announced today that, following a review of its New Zealand
manufacturing operations, it will close the facility at Otahuhu, near
Auckland, and further consolidate regional manufacturing activity at its
existing Laverton (Victoria) facilities.
The additional rationalisation of manufacturing activity - which follows the
announcement on 18 March of the reorganisation of the Australian operations -
is expected to result in annualised savings of $3 million, bringing total
regional savings to approximately $16 million when all changes are fully
implemented.
The closure of the New Zealand facility and associated transfer of production
activity will be undertaken over a two year period. Up to 59 New Zealand
based manufacturing related positions will be affected by the planned
changes.
Nufarm will record one-off restructuring costs in the current financial year
of $11 million, of which $9 million is a non-cash impact. This brings total
restructuring costs associated with the changes in Australia and New Zealand
to $50 million, of which $37 million is a non-cash impact.
Eventual sale proceeds associated with the Otahuhu site are expected to
result in a profit on sale of up to $10 million.
The transfer of manufacturing activity from New Zealand to expanded
facilities at Laverton will increase the utilisation and efficiency of those
facilities; will result in lower unit costs; and will reduce the region's
maintenance related capital expenditure and working capital requirements.
Nufarm's Managing Director, Doug Rathbone, said the NZ changes include a
larger logistics presence that will ensure that the company continues to
effectively service its New Zealand customer base.
"We will maintain a development laboratory in Auckland to support both local
and global product innovation and we will retain our North Island warehouse
facilities. In addition, we will expand warehouse and logistics support in
the South Island to support our growing business in the south.
"These changes will result in a more efficient regional business that will
continue to meet New Zealand based customers' requirements around reliability
and flexibility of supply and a high quality product portfolio developed for
local New Zealand conditions," said Mr Rathbone.
-- end --
Further information: Robert Reis
[email protected]
Corporate Affairs
* (61 3) 9282 1177
End CA:00249498 For:NFF Type:ASSET Time:2014-04-15 11:08:36
