Cavalier ends spinning at Onehunga – 70 jobs lost

BUSINESSDESK: Cavalier Corp is closing a yarn spinning plant in Onehunga, where about 90 people are employed.

The company is hoping to limit job losses to 70 by redeploying staff to other jobs. The plant, which will close on July 26, is part of subsidiary Norman Ellison Carpets.

"This decision is about reducing over-capacity in the yarn spinning operations that support the group’s broadloom carpet manufacturing operations", the company said.

Norman Ellison will continue to make carpet at its Onehunga tufting plant.

The shares last traded at $1.54 and have declined 21% this year.

The carpet maker said in June that market conditions for its carpet businesses remain very soft on both sides of the Tasman, with volumes and margins under pressure.

It said then that underlying earnings for the current year ending June 30 are likely to be in the range of $3 to 5 million after tax.

If it booked all of the one-off costs from a restructuring plan the company would report a loss of $1 million to $3 million after tax.

But the company is signalling a tax-paid profit in the range of $10 million to $12 million in the 2013 year, when it plans to recommence dividend payments.

3 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

3 Comments & Questions

Commenter icon key: Subscriber Verified

... and Rob Fyfe wasn't even their manager

  • 0
  • 0

Always sad to see good product companies hit the skids...I remember their wonderful ads and always bought their carpets...but that's what happens when NZ products just don't have a competitive pricing edge. At my age I've seen it all happen before and they say lunacy is doing the same thing and expecting different results.

  • 0
  • 0

High dollar impacting us again. Local companies losing out to cheap imports. Norman Ellison's tufting operation stays - in part due to the fact it is now tufting nylon wool mixes. Another example of NZ's slide down the OECD wealth ladder and ineffective government policy.

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6952 0.0000 0.00%
AUD 0.8901 0.0000 0.00%
EUR 0.5907 0.0000 0.00%
GBP 0.5276 0.0000 0.00%
HKD 5.4294 0.0000 0.00%
JPY 78.9230 0.0000 0.00%


Commodity Price Change Time
Gold Index 1278.6 -9.430 2017-10-20T00:
Oil Brent 57.8 0.550 2017-10-20T00:
Oil Nymex 51.9 0.580 2017-10-20T00:
Silver Index 17.0 -0.177 2017-10-20T00:


Symbol Open High Last %
NZX 50 8124.1 8142.3 8124.1 0.07%
NASDAQ 6633.4 6640.0 6605.1 0.36%
DAX 13057.8 13063.6 12990.1 0.01%
DJI 23205.2 23328.8 23163.0 0.71%
FTSE 7523.0 7560.0 7523.0 0.00%
HKSE 28360.0 28519.8 28159.1 1.17%
NI225 21391.0 21489.3 21448.5 0.04%
ASX 5896.1 5924.9 5896.1 0.17%