The jobs of 118 workers are at risk after this country's biggest supplier of tissue products decided to close its west Auckland factory.
Swedish-based SCA Hygiene, which produces material for the brands Sorbent, Purex, Handee and Treasures, told employees at its Henderson site that it would cease manufacturing by early 2010, The New Zealand Herald reported.
The company has two other productions sites -- at Te Rapa near Hamilton and Kawerau in the Bay of Plenty.
SCA's director of supply Kerrin Thomson said staff would be given the chance to relocate to the other sites in the North Island. Those unable to do so would receive their entitlements in line with their contracts.
But Mr Gunning said there was "no way in the world" that all of the employees could be found jobs at other sites. "Seventy or 80 people will lose their jobs, at best."
Mr Thomson said the proposal followed a two-month review of the company's New Zealand manufacturing operations.
The Henderson site was running at a loss of $3.5 million a year, while the Te Rapa and Kawerau factories remained profitable.
Mr Thomson said SCA would begin a consultation process with workers next week.
