The closure of the Bridgestone tyre factory in Papanui, Christchurch has brought bad news for at least 275 employers of the firm who have lost job in the tough hours of hard economic conditions.

The firm has decided to close both its utilities in Christchurch and Adelaide, South Australia due to slump in demand and ever declining margins.

The firm said, in its explanation, that international scenario has made the tyre production non-viable and the firm failed to meet with global competitiveness despite its continued efforts.

The firm said, "As the last tyre manufacturer in Australia and New Zealand, we have all worked hard over many years to avoid today's decision. However the unfortunate reality is that Bridgestone Australia Ltd. can no longer commercially justify the continued operation of these facilities.

" Meanwhile, its New Zealand plant would cease to operate by the end of 2009. While Australian facility would be closed not later than April 30, 2010. The affected workforce, as per the company, would be provided full entitlements.

Christchurch Central Labour MP Brendon Burns expressed shock over the incident and said, "It's a huge source of employment and revenue for the city. Our hearts have to go out to the 275 employees who as of Christmas have been told they will not have a job."