It calls itself "a New Zealand legend", but from next year the Swanndri will bear the branding "Made in China".
Fourteen mill workers at the Timaru plant will be made redundant over the next three months, with a further 12 warehouse, distribution and support staff having the opportunity to relocate within the company by next March.
Swanndri NZ chief executive Julian Bowden said the decision to move production offshore resulted from an "intensive strategic review of its business model".
The company's plant was old and had limited capacity. An upgrade was not commercially viable and "no amount of investment would make it globally competitive", he said.
The company website says: "More than any other Kiwi clothing brand, Swanndri has surely won the right to call itself the New Zealand legend".
"We want to look after our people," said Mr Bowden. "This decision is no reflection on them.
"In our hearts we wanted to stay with manufacturing in Timaru, but we ignore the economic and commercial reality at our peril."
- NZPA
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