Feltex Closing Two New Zealand Plants

Wellington, New Zealand, March 7, 2008-- Feltex plants in Foxton and Feilding are closing.

Godfrey Hirst, which bought Feltex from receivers in 2006, plans to create new jobs at plants in Dannevirke, Wiri in Auckland, and Lower Hutt, which will offset some job losses.

Some Feilding workers would try for jobs at Dannevirke but the other locations would be too far for Foxton workers, Mr Reid said.

Tania Pauling, general manager of Godfrey Hirst New Zealand, said there had been no investment in the Foxton factory for 10 to 15 years by Feltex.

"It is very run down. The freight costs in and out are less than ideal and we found it difficult to manage the site remotely,"

The Feilding plant was too small and its facilities were duplicated at other sites.

Cheap imports were becoming more of an issue.

"Basically we needed to do this in order to survive as a New Zealand-based manufacturer, which is getting harder and harder to do," she said.

The plant at Foxton made tufted carpet and the plant at Feilding produced yarn.