Cerebos Greggs is to close its East Tamaki plant, shifting production to Sydney and Dundein

Cerebos Gregg's is to close its East Tamaki plant, shifting production to Sydney and Dundein

New Zealand food and coffee producer Cerebos Gregg's, part of the Cerebos Pacific group, is to close its manufacturing operation in East Tamaki at the end of the year in a move which will see 125 jobs axed.

Production will move to Dunedin and Sydney before the plant closes on 19 December.

Cerebos Gregg's chief executive Terry Svenson advised the reason for closure as the plant "becoming too costly and inefficient to run".

"This is a truly sad day for everyone involved," he said. "Our East Tamaki factory now needs major capital investment. But we can't justify continuing to invest money in this ageing plant when we already have more modern manufacturing facilities capable of increased volumes.

"To position ourselves for future growth we have to consolidate our manufacturing operations. Shifting our coffee and food production to our sites in Dunedin and Sydney is the only feasible option. We will remain a major manufacturer and employer in New Zealand."

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Trans-Tasman food and coffee manufacturer Cerebos Gregg’s is to close its manufacturing operation in East Tamaki at the end of the year. 

Coffee and food currently produced at East Tamaki will move to Dunedin and Sydney. As a consequence up to 125 jobs may be lost when the East Tamaki manufacturing operation closes on 19 December 2014.

Cerebos Gregg’s will continue to provide full employment for the remaining nine months for all affected staff. The company will use this time to support staff and help them find new work.   

Uneconomic to continue

Cerebos Gregg’s Chief Executive Terry Svenson says the East Tamaki plant is becoming too costly and inefficient to run.  

“This is a truly sad day for everyone involved,” he says.

“Our East Tamaki factory now needs major capital investment.  But we can’t justify continuing to invest money in this ageing plant when we already have more modern manufacturing facilities capable of increased volumes.”

“To position ourselves for future growth we have to consolidate our manufacturing operations.  Shifting our coffee and food production to our sites in Dunedin and Sydney is the only feasible option. We will remain a major manufacturer and employer in New Zealand.”

Cerebos Gregg’s Country Manager for New Zealand, Andre Gargiulo, says the changes are necessary, but the transition won’t happen overnight. 

“With the help and support we are providing, many affected workers may be able to move into new roles with other local employers.”

“The company will continue to consult with staff, and assist them through this challenging time.”

 Dunedin expansion

Cerebos Gregg’s has underlined its commitment to New Zealand by recent and continuing significant investment in Dunedin. This includes millions of dollars worth of new plant installations and site development.  The company is already one of the country’s largest coffee producers.

Dunedin will become the centre of coffee production in New Zealand and Sydney will be the Trans-Tasman centre for food production.

Original source: Cerebos Gregg's