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.

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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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