Plastic goods manufacturer Click Clack has blamed the continuing high value of the New Zealand dollar for its decision to close its Christchurch plant at the end of June with the loss of 70 jobs.
Chief executive John Heng said today the company planned to move production to
its Levin factory, but some industrial lines made in Levin would be made offshore.
He said he could not rule out moving further manufacturing offshore if the New Zealand dollar and interest rates remained at high levels.
Of the 70 jobs hit by the Christchurch closure, up to 20 workers would be offered the opportunity to transfer to Levin.
The company, which produces a range of polycarbonate goods, including the popular Strahl beverageware, exports 85 per cent of its production to more than 60 countries worldwide from its Palmerston North base.
Mr Heng said Click Clack had struggled "long and hard" to combat the effects of the continuing high value of the New Zealand dollar over the past three or more years.
"A year ago in January, when we moved supplier contracts worth more than $3 million offshore, we warned that we couldn't go on forever with a New Zealand dollar that's so ridiculously over-valued.
"We've made many changes to the way we do business and cut our costs to the bone, with the result that we are a lean, finely honed operation."
Almost 80 jobs had been cut through attrition across the New Zealand group "over a period of time", Mr Heng said.
"Despite our best efforts, the Christchurch operation is becoming less profitable by the day due to the continual rise of the New Zealand currency."
Mr Heng said the company would work to help employees find new jobs.
- NZPA
