Sharechat Logo

Invacare's Dynamic Controls unit to shed up to 60 jobs in Christchurch

Thursday 8th November 2012

Text too small?

Dynamic Controls, which designs and makes controls for powered wheelchairs, is to wind down its contract manufacturing business in Christchurch in a move the EPMU union says could result in up to 60 job losses.

The company is owned by US-based Invacare Corp and had sales of about $90 million last year. Actual jobs losses can't be confirmed yet as some workers may transfer to the company's Medical Mobility division, chief executive Charlotte Walshe said in a statement.

"The impact of changes in global economic conditions over the last 9-12 months have been significant for our contract manufacturing business, to the point where it is no longer profitable," Walshe said. "We believe these conditions are unlikely to improve in the foreseeable future."

She confirmed that 40 to 60 jobs would be lost though the work is likely to be picked up by other manufacturers in Christchurch.

Dynamic Controls is ultimately owned by NYSE-listed Invacare, which last month posted quarterly results that included a pretax loss of US$2 million for the Asia-Pacific region. Much of that was due to "a significant reduction in net sales volumes" in its Australian distribution business, it said.

The decline in the company's subsidiary making microprocessor controllers "was primarily related to its contract manufacturing business for companies outside of the healthcare industry," said Invacare, which acquired Dynamic Controls in 1993.

Dynamic Controls shifted its own manufacturing to China in 2007 while retaining the contract manufacturing unit in Christchurch. Design and R&D work is still done in the city, where the company employs 200 of its 400 staff globally.

The EPMU, which represents workers at the Christchurch plant, said the announcement was a blow to the manufacturing sector after Rakon this week said it would cut 60 jobs and relocate the work to China. It said 40,000 manufacturing jobs have been lost to New Zealand since 2008.

Invacare stock last traded down 1.9 percent to US$14.07 on the NYSE and has shed about a third of its value in the past year. It is rated a 'buy' based on two recommendations compiled by Reuters, with a price target of US$18.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar stalled amid uncertainty about US rate cuts
RBNZ a 'poor communicator' - CBL's Harris
Methane reduction target could be catastrophic - Fonterra Shareholders' Council
Greater role for gas in electrification of transport, industry
Chorus sees growth in high value gigabit fibre plans
Arvida gets 87% uptake in $92 mln rights offer
NZ dollar weakens after US retail sales boost greenback
17th July 2019 Morning Report
Dairy product prices gain for first time in five auctions
MARKET CLOSE: NZ shares fall in listless trading; power companies gain

IRG See IRG research reports