Mondelez considers moving NZ Cadbury factory production to Australia
Mondelez International says it is considering closing its Cadbury chocolate factory in Dunedin in 2018.
If the closure goes ahead, operations will be moved to existing Australian sites and approximately 350 workers would lose their jobs.
The Dunedin Cadbury factory has been open for more than 80 years, producing Cadbury products for both New Zealand and Australia.
Over 70 per cent of the products currently made at the site are exported, with most shipped to Australia.
The proposed closure would see redundancies start taking place in late 2017, with only approximately 100 employees remaining on-site until early 2018.
Amanda Banfield, Mondelez International Area Vice-President said the announcement was an incredibly difficult one.
“Our people in Dunedin are amongst the best performing teams in the region and, if it weren’t for their dedication and outstanding performance, the factory might have closed some time ago,” she said.
Mondelez International said the decision to consider the factory’s closure is due to increasing competition, distance from its main market, its low production volume and complex product portfolio making it an expensive place to manufacture.
The company will now begin a consultation process with employees and says if its closure proposal is adopted, it will provide outplacement and career transition training.
Mondelez International is also planning on investing in redeveloping Dunedin’s ‘Cadbury World’. Cadbury World has been open in Dunedin since 2003 and teaches visitors about how Cadbury chocolate is made, alongside providing product samples.