5 Mar 2009

Offshore production working for two NZ brands

8:44 am on 5 March 2009

Two New Zealand manufacturers say moving production offshore has proved the only option that is economically viable.

Their example is being followed by Pacific Brands, which is closing two clothing factories and sending production to Asia, with the loss of up to 98 jobs in New Zealand.

Skellerup has already shifted some of its production to Asia, including trademark products like gumboots.

Swandri moved its production to China in 2005, when the company was losing about $1 million per year.

Both companies say the moves have proved beneficial.

Pacific Brands also announced on Friday that it would cut more than 1800 jobs in Australia and move production to Asia.

The company says its no longer economically viable to manufacture socks in Christchurch and thermal wear in Palmerston North. Employees were told at meetings on Wednesday afternoon.