Ballins closes N.I. plant

Press, 21 February 1980, Page 18

Ballins closes N.I. plant

The Masterton manufacturing plant of Ballins Industries, Ltd, and its subsidiary depots in the North Island, will close in April, the operations manager of Southern Bottlers, - Ltd (Mr Ken Roberts) said yesterday. The company claims that the closing—which will

effect about 36 employees in Masterton, Naenae, Palmerston North, and Dannevirke—is the result of continuing losses, aggravated by the imposition last year of a .20 per .cent: sales Tax on soft drinks. " •; 4 The closure was announced at a meeting of company employees at Ballins’ Masterton factory this morning. After the meeting Mr Roberts said that tire sales tax was the “last straw that broke the camel’s back.” He said that this was the fourth soft-drink factory to close in New Zealand in the last nine months.

Despite capital investment and efficiency measures taken in administration, production and distribution, the operations had made continuing losses, he -said. “Since the overnight introduction of sales tax on soft drinks in May, the company, along with the rest of the industry, has experienced continued sales declines of about 15 per cent.” Mr Roberts said that other companies had clc-sed at Taumarunui, Invercargill, and Timaru.

Ballins' Masterton operation itself closed a Pahiatua soft drink company because of a merger two years ago. Mr Roberts said that 16 of the firm’s 24 Masterton employees would be directly effected by the closure. The decision did not affect all employees, as alternative employment had been found for several people. “Redundancy terms for those affected will be negotiated with the staff and various unions before the closure in eight weeks time” he said.

Mr Roberts, and the Mas-terton-based North Island branch manager (Mr David Chin) left . for Palmerston North yesterday morning to meet with officials of the New Zealand Brewery and Soft Drink Workers’ Union. Ballins occupies an acre site in Masterton's Dixon Street, and it’s modern plant produces about 3.5 million bottles of soft drink annually. Mr Roberts said that although Southern Bottlers, Ltd, would withdraw its operation from the North Island, the Ballins brand and range of soft drinks would remain. Recently negotiations had

been held with Coca-Cola Bottlers Wellington, Ltd, and agreement reached whereby Coca-Cola would sell and deliver the Ballins brand with their existing range of products. Mr Roberts said that the Ballins plant in Masterton would be up for sale.

Production would cease on March 31, but the depots and distribution would continue until some time in April. “Some workers will be employed until May” he said.