The decision to end our manufacturing operations in Dunedin has been a very difficult one for our business. We recognise the significant history of Cadbury in Dunedin and its importance to the local community.
$80 million invested in the factory over the last 10 years
The reality behind the decision is that while we have invested over $80 million in the factory in the last 10 years and the team is amongst the best in the Asia-Pacific region, the factory is a long way from its main market with over 70 per cent of its product exported to other countries.
Additionally, the volume produced in Dunedin is small and the portfolio of products we make on the site is complex. While the business has absorbed the additional costs associated with Dunedin production for a number of years, there’s existing capacity in our Australia sites which can deliver these production volumes at the same quality our consumers expect.Want more details? Read the FAQs
This decision is designed to support the sustainability of our business and the 130 people we will continue to employ across New Zealand.
We have been through a formal consultation process with our people and their representatives and while a range of issues were discussed, no viable alternative was found to deliver the benefits required to sustain our local operations in Dunedin.
We expect operations to continue until early 2018, with production to ramp down from late 2017.
We have made the decision now to give our people as much time as possible to consider their options before the site’s closure.
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