Ann: GENERAL: NFF: Nufarm announces reorganisatio

• Release Date: 18/03/14 12:58
• Summary: GENERAL: NFF: Nufarm announces reorganisation of Australian operations
• Price Sensitive: No
• Download Document  4.42KB

					NFF
18/03/2014 10:58
GENERAL

REL: 1058 HRS Nufarm Finance (NZ) Limited

GENERAL: NFF: Nufarm announces reorganisation of Australian operations

Nufarm announces reorganisation of Australian operations

Nufarm Limited today announced a reorganisation of its Australian operations
which will result in a more flexible and responsive cost structure and an
increased focus on new product development and customer service.

The reorganisation follows an extensive review of the business and the
identification of opportunities to improve returns while consolidating
Nufarm's leadership position in the Australian market.

Nufarm's Managing Director, Doug Rathbone, said the new structure places a
stronger focus on product innovation and portfolio development, as well as
providing improved utilization of manufacturing assets and efficiencies
across logistics and supply chain areas that will see important benefits
delivered to Nufarm customers.

Changes will be made to improve the profitability of sales; lower expenses;
and reduce both working capital and the fixed cost base of the business.

The reorganisation includes the phased closure of two manufacturing
facilities (Welshpool and Lytton); the closure of a number of regional
service centres; and a significant streamlining of management resources
across most functions of the business.

Manufacturing facilities in Victoria will be expanded to facilitate
production of those products currently manufactured at sites which will
close. The new manufacturing footprint will have the capacity to meet
existing volume demand as well as meeting increased volume requirements in
periods of higher demand.

The changes - to be fully implemented over a two year period - are expected
to result in annual cost savings of up to $13 million. One-off restructuring
costs of up to $39 million will be booked in the current financial year-end
statements, of which approximately $28 million will be a non-cash impact.
Nufarm owns the majority of properties proposed for closure and will seek to
maximize sale proceeds after site closures.

"We have a highly valued market leadership position in Australia - via our
Nufarm and Crop Care businesses - and a key driver of the changes we are
making is to ensure we continue to meet and exceed the product and service
expectations of our customer base," said Mr Rathbone.

Details of the changes include:

o The phased closure of Nufarm manufacturing sites in Welshpool (Western
Australia)and in Lytton (Queensland);

o The transfer of production activity for certain products to the existing
main Laverton manufacturing facility in Victoria.

o The redevelopment and expansion of a second existing manufacturing site at
Laverton.

o The reorganization of the group's Australian regional service centre and
warehouse network, with key centres to be retained in major cropping regions
and the closure of six facilities.

o A new management structure and increased investment in product development
and portfolio renewal.

o A reorganization of various support and administration roles, with a
resulting headcount reduction in those functions.

"This is about improving the business and more effectively meeting the needs
of our customers with an efficient and cost-effective structure," said Mr
Rathbone.

"The changes will enable us to be more responsive; more competitive; and more
focused on delivering innovative, high quality products that continue to meet
the needs of our customers."

The company also announced that a review is underway of its manufacturing
operations in New Zealand.  The New Zealand manufacturing base includes
production capacity for a number of higher value products that are exported
to markets elsewhere in the world.  Preliminary conclusions of the review
will be discussed with New Zealand employees over coming weeks as part of a
consultation process.

Mr Rathbone said Nufarm is strongly committed to the New Zealand market and
to continuing the delivery of high quality products and services to New
Zealand customers.

-- end --

Management will host a conference call at 10.30am today (see details below)
to discuss the changes in Australia.

Participant Information
Direct DDI (s) for Participant Connection Australia Toll Free 1800 153 721
Sydney Local Toll 02 8212 8333
International +61 2 8212 8333
Participant Pin Code 602582

Further information: Robert Reis
   [email protected]
   Corporate Affairs
   * (61 3) 9282 1177
End CA:00248342 For:NFF    Type:GENERAL    Time:2014-03-18 10:58:28