Bremworth launches $6M expansion of cyclone-damaged Napier plant
Listed carpet manufacturer, Bremworth is undertaking a $6 million expansion at its Napier plant more than two years after the site was heavily damaged by Cyclone Gabrielle.
To provide clarity to staff, the company is now offering staff options that include voluntary redundancy or redeployment to the Whanganui plant.
Bremworth chief executive Greg Smith says since the weather event in February, the priority has been its people.
"While we do not yet have a definitive view around the future of the plant, we are doing all we can to support them and working through the process in good faith," says Smith.
The Napier plant and buildings suffered extensive damage. A detailed assessment of the damage, involving external engineering specialists over the last few months. This has now been completed and the results are being reviewed by the loss adjustors and Bremworth. The insurance claims process is expected to take several months to complete.
Smith says Bremworth has been conscious of the impact on staff during this time. While employee have been paid since the plant went offline in February, he says the company realises that staff are looking for more clarity around their future at the Napier plant. In response to staff feedback, Bremworth is presenting several options to team members that may assist with their personal circumstances and wellbeing. Career and financial advice, as well as emotional support, is available to employees.
Bremworth Napier is a key plant, supplying yarn to the carpet operation and dyed fibre to the Whanganui yarn plant.
Following Cyclone Gabrielle's impact on the Napier plant, Bremworth made alternative supply arrangements - including supply of yarns from an independent New Zealand yarn spinner, the use of independent third-party dyeing facilities to supply the Whanganui yarn spinning plant, the supply of NZ wool yarns from overseas suppliers.
Smith says business continuity plans have been in place and progressing well. Insurance payments to date have also ensured Bremworth support affected staff and meet its ongoing obligation.
Further insurance payments are expected upon completion of the assessment of damage to buildings, plant and equipment, and the loss of inventory and profit.
Smith confirms that alternative supply arrangements for dyed fibre and yarns are proving successful, "putting the company into an encouraging position to continue to supply key product ranges to its distribution partners".
Bremworth also operates a plant in Auckland.
