Nufarm, which is a leading agricultural chemicals manufacturer, has said that it is planning to close down its plant in New Zealand.
The company has also said that it is planning to shift its regional production to Victoria. The company believes that consolidating its production will generate annual cost savings of $3 million. The move will result in a loss of 59 jobs at the Otahuhu factory, in Auckland, according to the company.
The company announced its restructuring a month after it announced its plans to close two manufacturing facilities and cut 105 jobs in Australia. The move was aimed at saving costs and increase focus on product development.
The company has also reserved a one time restructuring charge of $39 million at that time. It is aiming to maximise sales proceeds from the sale of the facilities. The company will take an additional $11 million charge for the restructuring costs linked to the closing of unit in New Zealand.
The company is aiming to increase its sale from Otahuhu to generate $10 million profit. The total savings is expected to reach to about $16 million a year.
Shares of Nufarm last traded at A$3.99 on the ASX and have declined 4.1 percent in the past 12 months.