NZ jobs shift to China in PDL rejig

The company says it will move the manufacture of the commodity part of its New Zealand electrical products business to its plant in China because manufacturing them here is no longer competitive.

The products, currently made in Christchurch, include such items as double power points and single electrical switches.

Commodity manufacturing represents around 30% of the New Zealand electrical products business. The division as a whole accounts for about a third of company revenue.

PDL boss, Mark Stewart, says a number of positions will become redundant although the final numbers have yet to be worked out.

The latest move continues a restructuring that has been underway at PDL for the past three years, including last year's sale of its plastics business and last week's disposal of the Mistral fan business in South East Asia.

" Our strategy for our future here in New Zealand is to orientate ourselves towards being a higher technology solutions company not a commodity product manufacturer," says Mark Stewart.

"In the future, we want the significant part of PDL's revenue stream to come from new products and solutions."

Mr Stewart says PDL had recognised some time ago that focussing on providing innovative technology solutions was the way to secure its future.

"In recent years we have moved a great deal of our product development emphasis into higher technology areas such as our variable speed drive business, investments in building operating systems and application software development.

"We are continually working to develop new products and solutions, which can be quickly delivered to the international marketplace, setting the pace in meeting customer needs.

Mr Stewart says the current economic situation underpinned the need for a refocusing of the electrical products group.

"Despite the benefits that have come from our overall restructuring, PDL is still facing a number of challenges outside of our control - the Australasian building industry slump, material shortages, price rises for basic components, and the low value of the New Zealand dollar.

" We need to make real changes to stay in the global game."

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