More cut backs as PMP shrinks NZ print business

60 staff from PMP New Zealand are set to lose their jobs as part of the company’s rationalisation plans.

PMP NZ is embarking on a major transformation of its print business, following last year’s decision to consolidate its five print centres and open a $20 million South Auckland supersite by October this year. As part of the consolidation, PMP’s Christchurch operations will also move onto one site.

Peter Browne, (pictured) executive general manager for New Zealand confirmed that the changes would result in a reduced headcount. This is in addition to job losses that will take place at PMP’s Warkworth site, which closes later in the year.  “This means changes to and the loss of jobs, and a different management structure,” he said. “However, we will end up with a far more cohesive and integrated business. We are streamlining the business, making it an easier and more efficient business to deal with from a customer perspective.”

It is no secret that the New Zealand printing industry has been subdued for some time, with disaster in Christchurch proving a further blow to business. It is also a further blow for New Zealand printers who will likely face an uphill battle in attempting to find new work, especially after APN’s Manukau plant closed last year. In its 2011 first-half results, PMP said that revenues continue to decline due to “aggressive price competition in print markets and lower volumes.” CEO, Richard Allely, however, expects fiscal 2011 to show strong earnings improvement.

There is much to be down between now and October, when PMP NZ will move its head office from central Auckland to Manukau, shift its Morningside site to Vestey Drive, Mount Wellington and consolidate two Christchurch sites at Birmingham Drive, Riccarton.

The new Manukau site will house existing equipment, along with a new 48-page press, a computerised pick-and-pack system for magazine order processing and a high-speed mail inserter.

Browne believes the changes are necessary to adapt to the current economic climate. “We are repositioning our business to face the current realities, yet in a manner that we believe will strengthen our position in both the short and longer term,” he said.