9 Oct 2009

Fairydown moves production to China

2:48 pm on 9 October 2009

Bedding maker Fairydown is planning to close its Christchurch factory and move production to China in a bid to cut costs.

The company's owner, Pacific Brands, says 25 jobs will be lost at the Hornby factory, though some warehouse and sales jobs will be moved to Auckland.

When manufacturing ceases in November, all products will be made in Australia and China.

Pacific Brands spokesman Matthew Mahon says there are no plans to close the company's Yakka clothing factory on Auckland's North Shore.

However the Hornby factory is no longer viable, he says, due to the general economic situation and competitors moving offshore.

The company will offer Hornby workers up to $3,000 each to retrain.