Manufacturing move customer-driven, says Kathmandu

The outdoor clothing and equipment retailer Kathmandu says the decision to move part of its manufacturing operation overseas was driven by customer demand.

Whangarei manufacturer Glenside Clothing announced last week it would close this month after Kathmandu, its major client, decided to source its wet-weather gear from China. Twenty-eight machinists will lose their jobs.

Kathmandu acting chief executive Rod Harris said the company had tried manufacturing all its clothing in New Zealand. But the only way to give customers a high-quality product at an affordable price was to go overseas.

"When we manufactured all our clothing in New Zealand we employed less than 50 people. Now we employ more than 600, with 26 stores across Australasia," he said. It was unfortunate that Glenside could not find any other contracts in the year since it was told of Kathmandu's move, Mr Harris said.