More than 400 jobs are on the line at General Cable Oceania in Christchurch.
General Cable is undergoing as major shakeup under managing director Chris Birkett who took up the reins two years ago.

He is avoiding further media comment while he talks the issues through with staff and stakeholders.

Mr Birkett says the changes are critical to the long-term sustainability of the Christchurch manufacturing operation.

The proposed “manufacturing transformation project” involves relocating the supply of low value-add products currently manufactured in Christchurch for the Australian market, to South East Asia. It also involves reconfiguring and upgrading the factory in Christchurch with an investment of $5 million.

Staff will also be laid off but the numbers re be kept secret for now. More productivity improvements are also part of the plan.

Mr Birkett said General Cable believes the shift to higher value-add products is best and right for the business and that there are no tenable alternatives available to what is proposed.

“Like many other companies, General Cable has suffered significant losses as a result of the global economic crisis. The company had several years of losses despite considerable gains made through the new productivity improvement model. The improvement is significant but there is a commercial reality. We must show a sustainable return to shareholders within the next 18 months.”

General Cable has been susceptible to exchange rate fluctuations and imported raw material prices

He said General Cable intends to remain the leader in the New Zealand market and to strengthen its competitive position in the domestic market.

The General Cable announcement follows a handful of other large employers who have laid off staff in Christchurch over the past couple of years, such as LWR Industries.