Distance from international markets may cost jobs at Napier firm PDL Electronics as it looks to shift production of its motor components overseas.
The company, now jointly owned by French-based Schneider Electric and Japanese conglomerate Toshiba, is due to decide this month on the future of its manufacturing plant in
Onekawa.
The company is regarded as a worldwide leader in the development of AC motor drives, used in software and industrial applications such as elevators, winches, extruders and pumps.
Staff numbers dropped from 230 at the end of 2002 to 92 now.
Operations manager Michael Lynch said the proposal from owner Schneider Toshiba Inverter was to stop all research and development and manufacturing at the plant, but to keep its after-sales support and service centre open.
The main reason for the shift was the steep logistical costs to import components and ship the finished products to its main markets in North America, Asia and Europe.
PDL's existing variable-speed drives were being superseded by superior STI products and the larger volumes required made manufacturing in STI's plants in nextdoor markets France, China and Japan more economical, said Lynch.
PDL New Zealand-based president Jacky Pillais said a decision on the future of the plant would follow consultation with employees and the union.
"We realise this will be very unsettling for our staff and we want to move as quickly as possible so they know where they stand," Mr Pillais said.
The review did not affect the PDL brand electrical switchgear and wiring accessories produced at the company's plant in Christchurch.
