More signs of downturn

Bread maker to fold factories in NZ, Australia

Australasia's biggest food producer has moved to ease employee fears over mass job losses, following reports it is set to close 18 factories across New Zealand and Australia.

TVNZ,

4 September, 2012

A spokesman for bread maker Goodman Fielder told ONE News the company will either sell or close the factories in an effort to save $128million over the next three years.

The company said it is not yet in a position to confirm which factories will close, or how many job losses there might be.

Chief executive Chris Delaney previously said the company would slash the number of factories it currently owns from 53 to 35 or less, in a bid to hit savings targets.

According to the Sydney Morning Herald, the reduction includes five plants to be sold as part of the firm's exit from Integro Foods and the New Zealand milling business.

Spokesman Martin Cole said closures would mainly be in the baking business, and job cuts are not a sure thing.

''This is not necessarily about jobs going. It's about having fewer but bigger and better bakeries," he said.

The cuts are a response to fierce competition in the food industry and mass migration to cheaper supermarket brands.

The company has already said goodbye to 600 jobs in restructuring, and reported a net loss of $146.9 million for 2011-12.