17 Jan 2014

Rakon to shut UK plant

8:32 am on 17 January 2014

Rakon is closing its manufacturing plant in the British city of Lincoln, a move that will wipe up to $5 million from the struggling company's operating result.

Up to 88 British jobs will be lost as the manufacturing is moved back to New Zealand.

If the plant is closed during the current financial year, Rakon's bottom line loss will increase to at least $55 million.

Craigs Investment Partners head of wealth research Mark Lister says his company has already dropped coverage of Rakon and doesn't regard it as investment quality.