Godfrey Hirst plans to cut 50 jobs at Dannevirke plant as demand for wool carpets wanes

Friday 19th July 2013

Godfrey Hirst, the biggest carpet maker in Australia and New Zealand, plans to cut at least 50 of the 85 jobs at its Dannevirke plant.

The company told staff it planned to cut the jobs by the end of September, alongside a proposal for remaining staff to move to shift work with reduced hours, according to First Union, which represents the workers. The cutbacks at the factory, formerly owned by Feltex, will probably spell the end of its wool spinning operation although it may continue operating its dyehouse, the union said.

Demand for woollen carpets has waned as a result of competition from cheaper synthetic alternatives. Godfrey Hirst has closed its earthquake-damaged Christchurch mill and cut back staff at the unprofitable Summit Wool Spinners plant in Oamaru that it bought in January. After taking over Feltex, it closed a Christchurch carpet plant, a Foxton carpet plant and a Fielding spinning plant.

Rival Cavalier Corp. shut a yarn spinning plant in Onehunga last year because of overcapacity in the sector, with the loss of about 85 jobs.

Godfrey Hirst maintains a spinning plant in Lower Hutt and a carpet mill in Wiri, Auckland.

BusinessDesk.co.nz

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