Mondelēz mulls New Zealand factory closure
Snack giant Mondelēz International has revealed plans to close its factory in Dunedin, New Zealand, which would end the snack company’s manufacturing operations in the country.
The Dunedin factory has produced Cadbury products for more than 80 years and the site currently employs 350 people. Over 70% of the products manufactured there are exported, with the vast majority being shipped to customers in Australia.
If the proposal is adopted, the first phase of redundancies will take place late in 2017, with around 100 people remaining with the business until early 2018. Production from the Dunedin facility will move into existing factories in Australia.
“The company’s proposal is the result of extensive consideration of the issues affecting local production,” says Amanda Banfield, area vice president for Australia, New Zealand and Japan.
“We operate in an increasingly competitive industry and the factory’s distance from its main market, low volume and complex product portfolio, make it an expensive place to manufacture our products.”
While the proposal would see an end to production in Dunedin, Mondelēz International says it will maintain a significant and sustainable presence in New Zealand with over 130 people continuing to work in the commercial, finance and human resources teams across the country.
“New Zealand remains an important market for our business, and if the proposal is adopted, we will continue to invest in those things that make us a valued partner to hundreds of businesses throughout the country,” concludes Banfield.
