Factory to close

Press, Volume CXI, Issue 32639, 22 June 1971, Page 1

Factory to close

The firm of A. Wander (New Zealand), Ltd, manufacturer o f Ovaltine, will close its Christchurch factory and move its manufacturing from Christchurch t o Auckland at the end of the year. The imposing factory; with its award-winning gardens, in the Main North Road, is one of Chirstchurch’s best-known buildings. It has been producing Ovaltine and malt products since 1945. A statement by the company yesterday said that the transfer of production had become necessary because of difficulties associated with the high cost of transport and the location of the Christchurch factory in relation to the com-

pany*s principal market The general manager for the Australian area (Mr P. R. Stone) had advised all employees concerned at the Christchurch factory that a positive plan by the company’s management would provide cash payments based on length of service, and that assistance would be given in placing employees in other work. The company has completed arrangements with a New Zealand manufacturing company to continue the production of Ovaltine for the New Zealand market, according to the statement Further details will be announced later. “The company believes that strong industries are important for New Zealand, and that it is in the country’s as well as the company’s interest for an uneconomic factory to be closed and the production transferred to another factory in the country,” said the statement Faith in New Zealand was demonstrated by the fact that the company would continue to trade in the country under the arrangements made for the transfer of production. Some 20 members of the staff would be involved, the factory manager (Mr W. T. Rice) said last evening. If they wished, there probably would be an opportunity for them to be employed in the Auckland factory. The factory had not been sold yet but would be placed on the market. Since production began 21 years ago, the factory contributed about $5 million to the New Zealand economy in overseas funds through exports, said Mr Rice.