Croxley confirms factory closure, 100 job losses

It's been confirmed that nearly 100 people will lose their jobs when Auckland's Coxley Stationery factory closes its doors next year.

Rural postman delivers letter. Source: Fair Go

Email use has reduced demand for Coxley's writing paper and envelopes which it's been making in New Zealand for almost a century.

The company has decided to stop manufacturing and become a wholesaler instead.

Croxley Stationery today confirmed it will cease manufacturing over the next nine months.

Managing Director David Lilburne paid tribute to staff who will be affected by the change, which will see close to 100 people made redundant between now and the middle of next year.

He says the manufacturing team have done an outstanding job and could not possibly have done anything to change the situation.

Mr Lilburne says key factors contributing to the decision include a decline in postal use and demand for traditional paper-based products with emails replacing envelopes and writing paper.

Other factors are the widespread availability of cheap imported products, the strength of the New Zealand dollar which impacts on Croxley's ability to successfully export products manufactured locally and the fact that investing in new manufacturing machinery in a declining market doesn't stack up.

Croxley's envelope production is likely to wrap up between now and the end of the year with other areas of manufacturing to follow in the first half of 2015.