Tannery to lay off staff

Press, Volume CXV, Issue 33814, 10 April 1975, Page 2

Tannery to lay off staff

(N Z. Press Association)

TIMARU, April 9

A drop in export orders has forced New Zealand Light Leathers, Ltd, to cut production at its Washdyke tannery between 33 and 50 per cent for the rest of this financial year. About 25 of the staff of 70 will probably be laid off.

The ssm tannery has been in production since last July. The chairman of directors (Dr J. S. Watt) said in a statement that in March word of a sudden market recession was received from the company’s selling agent in Europe (Booth International). The general manager (Mr L. M. Yates) and the commercial manager (Mr A. H. Plummer) were sent on an urgent trip to Britain, Europe, and the United States to assess market prospects. Mr Yates had just returned and confirmed the fall in demand for crust leather. “All indications are that this fall is temporary and that the market has bottomed.”

Overseas, there was virtually complete agreement that, long term demand for crust leather and its finished products would be strong, and

that an upturn could be expected to start in the next few months, said Dr Watt. In view of this, the directors had decided to curtail production temporarily, and for the rest of the financial year to produce at a rate onehalf to two-thirds of present production. “Unfortunately, this will entail temporary reduction in staff numbers, but the cooperation of the union and the Labour Department is being sought to find alternative local work for those whose services cannot be retained.”

The profit of $52,000 forecast in the prospectus would not be achieved, and a loss for the year ending September 30, 1975, was likely, said Dr Watt.