Fletcher plywood plant forced to close

Press, Volume CXV, Issue 33786, 7 March 1975, Page 1

Fletcher plywood plant forced to close

Ihe Christchurch plywood factory of the Fletcher Timber Company, Ltd, will be progressively closed over the next six to eight weeks. Between 70 and 75 workers, mainly members of the New Zealand Timber Workers’ Union, are affected.

i The managing director of (Fletcher Timber (Mr A. B. ( Downey) said yesterday that (certain historical as well as (present economic factors had forced the closing of the j factory. “Before Christmas, overseas markets, particularly in (Australia, closed up with the (building decline, and 'domestic markets were not (far behind.” he said. “Week- ( to week losses mounted and, (as we told the entire staff in (January, the situation was> (serious. We had hoped to ! weather the storm, but it has just not been possible.” Mr Downey said that in . 1947 the factory had been (designed to produce plywood (using New Zealand native wood. “This was successful until the 19605, when the Government of the day, in a justified attempt to secure (regional development for the (West Coast, sought pro(posals for increased industrialisation in the area,” he said. A sawmill . processing plant was established at Ruatapu, near Hokitika, and a plywood factory at Glad I stone, near Greymouth, an investment that cost the .company more than s3m. ♦'The irony'* I “The unhappy irony of the situation was that the native (timber available for ‘peelers’ ■ — the special log required for plywood — was a good 50 per cent under official forecasts,” said Mr Downey. “We were left with’ two factories more or less competing for a single, and not very sufficient resource. Radiata pine logs were by then becoming available, and i imported ‘peelers’ were used

to keep the factories func-i tioning in the late 19605. ‘‘Obviously, it was best to leave the West Coast factory to concentrate on the West Coast resource,” Mr Downey said. “In 1968. we switched the Christchurch operation to radiata plywood.” The company Tiad known perfectly well that a major radiala plywood factory could not be established in I he South Island because the limber resources were not there. However, it planned to use the Christchurch factory as a development plant thai could eventually lead to a larger North Island factory, while the South Island factory could act as a supply, unit. “The promotion campaign was pretty’ successful, and we established the plywood both in New Zealand and as an export to the United Kingdom, Australia, and the Pacific area,” Mr Downey said. Late in 1973, tenders had been called by the New Zealand Forest Service for the one resource that would have supported a large-scale North Island plant.—the Kaiangaroa forest. But Fletcher Timber w.as unsuccessful in its tender. “The successful tenderer then announced his intention of building a major plywood ( plant at Kinleith,” said Mr Downey. “This immediately removed the long-term prospects for the Christchurch plant, and economic events soon removed the short-term ones. The Christchurch staff was told of the decision to close the factorv at a meeting late yesterday afternoon. Discussions have begun with the unions involved, and agree-

'ment reached on redundancy provisions; and Fletcher Timber has informed various Government departments of the situation. “We are immediately setting up a re-employment ceptre at the factory, in association with the Labour Department,” Mr Downey said. “What vacancies w z e can find ifi associated companies in Christchurch will be reserved lor the plywood factory employees, but there may not be many.” Mr Downev has written fo 128 Christchurch manufacturers and employers recommending his employees for any positions that may’ be available —and early last evening one Christchurch manufacturer had told him that he had immediate vacancies for 25 process workers. A Timber Workers’ Union official said last evening that he was quite confident that every employee affected by the closing of the factory would be found a job. At the most, 62 union members were involved and their employment had been guaranteed by Fletchers and by other firms. (History of plant, Page I 4)