New Zealand

SCA Hygiene to shut New Zealand tissue and napkin converting site

SCA Hygiene Australasia is to restructure its New Zealand tissue manufacturing operations over the next 20 months with the loss of 140 jobs.

It will consolidate its two tissue manufacturing plants at Te Rapa, Hamilton and Kawera, into one site at Kawerau.

The Te Rapa plant is expected to close in 1Q 2014 resulting in approximately 140 job losses.

SCA HA will invest NZ$57m to upgrade the Kawerau tissue manufacturing site. SCA HA president Peter Diplaris said: “These are difficult times for local manufacturers but we are confident that with the right approach we can build a strong and competitive future for our company in this region. Site optimisation at Kawerau is the key to achieving this.

“This decision is not a reflection on the efforts or contribution of our people in Te Rapa, but rather reflects the challenging economic and market environment we continue to operate within, including the pressure of imports.”

Diplaris added that SCA HA wants to keep manufacturing in New Zealand but in order to be competitive changes are necessary. “Unfortunately, maintaining the status quo for our local tissue manufacturing is not sustainable. We want to ensure the majority of our products for our New Zealand customers and consumers continue to be manufactured in New Zealand.”