28 Jun 2012

Yarn closure will cut operating costs - Cavalier

7:15 am on 28 June 2012

Carpet-maker Cavalier Corporation says the closure of its yarn spinning plant in South Auckland will cut operating costs as it tackles falling demand from a weak building sector in its Australasian markets.

Jobs of 85 workers will be affected when the company closes the Onehunga factory of its subsidiary company Norman Ellison Carpets at the end of July.

The company hopes to move some workers to other plants, leaving about 70 staff without jobs.

Cavalier's chief executive, Colin McKenzie, says though the closure will reduce operating costs as part of a business improvement programme, the changes will cost the company up to $5 million this year in reduced earnings.