Agricultural chemicals manufacturer Nufarm will close its Auckland manufacturing plant and, as a result, up to 59 jobs will be lost.
AAP reports that the closure of the factory in the Auckland suburb of Otahuhu will save the company $3 million. The move is part of a wider restructure by Nufarm.
In March this year Nufarm announced that it would close its manufacturing plants at Welshpool in Western Australia and Lytton in Queensland.
In addition, restructuring of its regional service centres and warehouses will result in the closure of six other facilities. Support and administration jobs will be lost as a result.
The eventual sale of the site is expected to earn the company $10 million in profit.
Production currently carried out at the Auckland plant will be moved to the company’s plant at Laverton in Victoria.
The move "will increase the utilisation and efficiency of those facilities, will result in lower unit costs and will reduce the region's maintenance-related capital expenditure and working capital requirements," Nufarm said.
TVNZ reports that Nufram shares last traded at $3.99 on the ASX. They have dropped by 4.1% in the last year .
The shares are rated 'hold' based on the consensus of 32 analysts polled by Reuters, with a median price target of $4.55.