Historic Tobacco Plant to Close - 170 Jobs May Go

Source from:  10.09. REON SUDDABY hbtoday.co.nz 09/12/2005

As many as 170 jobs are set to be stubbed out with the announcement yesterday that the landmark British American Tobacco factory in Napier is to shut down. BAT will close its Ahuriri manufacturing site and transfer production to its Sydney factory, completing transfer of tobacco product lines by July next year. The company's staff were told the news at a meeting in the factory yesterday afternoon. BAT New Zealand managing director William Toh blamed declining tobacco sales, saying there was a need to "consolidate production, following declining volumes for tobacco products in New Zealand and across Australasia". "The Sydney site has more modern machinery and the ability to produce additional volume. The Napier site, with its aging machinery, would require considerable investment that would not be recouped through increased volumes," he said. Products for the New Zealand market would be shipped from Australia and distributed from the company's Napier despatch department. However, that arrangement could be reviewed. BAT New Zealand's director of corporate and regulatory affairs, Carrick Graham, said the number of jobs lost would be known after staff were consulted. "We have a lot of employees who are second or third-generation here. It's a sad day," he said. Mr Graham said most staff had known the site closure "wasn't a matter of if, but when". Staff had been offered a redundancy package including a week's pay for their first year of service, plus two weeks for every additional year. Employees with three months' service or more received a payment of $3000 before tax for relocation and training. An incentive payment of two months' pay, based on performance, was also available, Mr Graham said. The decision to close the plant will mean the historic Art Deco building is likely to be sold with the land. Mr Graham said he had already spoken to Napier Mayor Barbara Arnott about protecting the building. "It (the building) is a Classification One. No-one can bulldoze it, no-one can really touch it, which is magnificent." Napier Art Deco Trust executive director Robert McGregor said he had "no fears" for the safety of the building, which he described as "possibly the most famous New Zealand building in the world". BAT New Zealand plans to make an annual grant to the Art Deco Trust over the next five years. Mrs Arnott described the news of the plant's closure as "very disappointing ... 150 families with a question mark hanging over them is not good news for anyone," she said. British American Tobacco New Zealand had for many years been good corporate citizens of Napier. She hoped families affected by the closure would be able to stay in Hawke's Bay. Enditem