Twenty-nine jobs are on the line at a Christchurch insulation factory as the company, Tasman Insulation, looks to merge its factories.
Tasman Insulation, a subsidiary of Fletcher Building, makes Pink Batts at its factories based in Christchurch and Auckland, and spokesman Tim Richards said the Christchurch plant may close.
He said after considering the options, merging the two plants was picked as the best move.
"We're recommending this because it's the best option that we have, we believe after going through a number of options to strengthening the business here in New Zealand."
A union spokesperson says a proposed lay-off of 29 jobs at the company that makes Pink Batts doesn't bode well for New Zealand's manufacturing future.
An Engineering, Printing, and Manufacturing Union spokesperson, Louisa Wall, says the company has made no commitment to stay in New Zealand.