FOR IMMEDIATE RELEASE
FISHER & PAYKEL APPLIANCES RELOCATING MORE
TO USA
Fisher & Paykel Appliances is to relocate the production of
SmartLoad Dryers to its new manufacturing site in North America.
The top loading large capacity dryers were designed specifically
for the United States market where the Company sells more than 95
per cent of the SmartLoad dryers currently produced on the East
Tamaki, Auckland, site. Plant and equipment will be relocated to
Clyde, Ohio, over the northern summer, and is expected to be in
production late 2006.
“Like the washers, these Dryers are large and give us the
same opportunity to save costs of working capital and freight,”
says John Bongard, CEO and Managing Director. “Placing the
production closer to our largest customer base for them makes good
business sense.”
Once the plant is fully operational in North America the expected
benefits are a reduction in working capital of approximately $8
million and an earnings improvement (at EBIT level) of approximately
$2.5 million per annum, at the expected sales levels.
Recent growth in sales in the USA means this market is now the major
revenue generator for the Company. While Laundry products dominate
US sales, the Company also sells Cooking and DishDrawer products
there.
The relocation will reduce the number of jobs on the Auckland site,
but this will not happen immediately. Sixty-five positions are directly
involved with current SmartLoad production. People will be redeployed
around the site and natural attrition is also expected to lessen
the impact of redundancy. John Bongard also said, "While we
never like seeing jobs disappear from New Zealand we also have to
think of the long-term interests of the business. Anyone involved
in exporting right now is finding it tough, but this is not all
about currency it is also about saving ongoing costs."
By the end of next year the Clyde plant will be producing washing
machines, clothes dryers and appliance motors. The Company also
has a production facility in Huntington Beach, California, where
it manufactures indoor and outdoor cooking products.
This announcement will also be available on our website www.fisherpaykel.com.
Press contact:
Scott Davies
949-790-8900
scott.davies@fisherpaykel.com
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