Interlock jobs to go in overseas move

1.00pm

Wellington manufacturer Interlock is planning to shift part of its Miramar production overseas in a move that will shed about 80 jobs.

Interlock chief executive D'Arcy Quinn confirmed the downsizing of the 43-year-old firm last night.

"To remain price competitive we will have to move the manufacture of particular products to a low-cost manufacturing country -- most likely China," Mr Quinn said.

The looming arrival of a competitor selling much cheaper foreign-made versions of Interlock's window stays has forced the decision to move certain manufacturing operations.

"At least 80 people, which are a significant number of our Miramar staff, work on the window stays and their jobs will ultimately go."

The now Swedish-owned firm was founded in a Breaker Bay caravan in 1961 by Wellingtonians Stuart Young and Ron Davis. Since then Interlock has evolved into an award-winning exporter employing 270 people at its Miramar plant. It was taken over by the world's leading lock maker, Swedish conglomerate Assa Abloy, in November 2001.

Describing staff relations as "helluva good", Mr Quinn said he was extremely disappointed to have to cut back Interlock's Wellington operations.

"This is very disappointing to me that all these people who are loyal, hard working and dedicated are going to lose their jobs," he said.

Interlock management believes the competing product originates from China.

"We've seen the price at which they'll be going to market and in some cases they're so low that they compare to what we pay just for raw material. We just can't compete with those prices," Mr Quinn said.

"Our existing customers will therefore be at a price disadvantage and as we're not going to walk away from a successful long-term business we have to take steps to ensure we remain competitive."

Those steps will see Interlock window stays made in China and Mr Quinn could not rule out the possibility that other products would follow suit.

"We don't know the full outcome yet in terms of how much production will move to low-cost manufacturing and we won't till we see exactly what the competition is doing. But the information we've seen so far doesn't look good."

He added that he would find it easier to accept the decision to downsize if market share had been lost to a superior, innovative product. "But to be hit by a copy with no innovation I find that very, very hard to accept."

Engineering, Printing and Manufacturing Union organiser Sarah McRae said the union was monitoring the situation.

"At this stage nothing has happened apart from staff being told of the situation, but if (job cuts) go ahead we will be making sure staff get the best deal going and we'll be doing a haka if they don't," Ms McRae said.

Meanwhile, Mr Quinn said there was nothing unusual about the resignation of three directors, including himself, from the Interlock board.

Companies Office website documents filed by Interlock on May 18, 2004, show former chairman Tony Gledhill, Mr Quinn and fellow director David Mair all resigned as directors in late April.

"We're part of Assa Abloy now so we simply didn't need so many people on the board," Mr Quinn said.

- NZPA