Carter Holt Harvey (CHH) will consolidate its Cartons business in Victoria, Australia including the relocation of the CHH Packaging Australia head office and closure of the Dandenong manufacturing facility.
CHH Packaging Australia CEO Jim Snelson said the cartons business had made substantial changes to improve performance, but was unable to sustain the current number of sites given price pressure from customers, softening industry demand and the need to reduce converting capacity.
“We regret the need to close the site and appreciate the news will be very difficult for our 54 manufacturing employees and their families,” he said.
“Those affected by this decision will naturally receive their full entitlements and the company will do everything possible to reduce uncertainty and support our employees through the process of finding alternative employment.”
CHH Packaging Australia will consolidate its Victorian carton volumes at the Reservoir site which may result in the creation of up to 24 new positions.
The company will explore all practical opportunities for redeployment of Dandenong employees.
“This change is part of creating an industry competitive manufacturing facility at Reservoir that will meet the changing needs of our customers, including the growing demand for 3b sized product,” Snelson said.
Production at the Dandenong site will be phased out over the next three months and all operations will cease by the end of October 2005.
The CHH Packaging Australia Head Office and 19 associated employees will be relocated as soon as a suitable alternative is found.