Merry Christmas NZ steel manufacturing

Is this our first fallout from Jacinda’s big fat anti-Trump mouth?

Newstalk reports. Quote.

Auckland-based iron casting company Precision Foundry has been placed in receivership affecting up to 200 staff.” End of quote.

A newspaper?also reported that workers at the Auckland foundry, which employs 85 people, were sent home for Christmas with three weeks pay and no job to come back to.

Newstalk reported. Quote.

Precision Foundry, formerly Masport Foundries, was taken over in October 2014 by private equity firm Challenge Partners.”?

Receivers Grant Graham and Pravin Bhana of KordaMentha were appointed this morning, Challenge Partners director Paul Ayers confirmed in a text message to the?Herald.

The company is the country’s leading manufacturer of cast ductile and alloy iron, from its Mt Wellington plant.

The company, which now operates under the MFL name, pours several thousand tonnes annually of high-quality iron castings, most of which are then machined and/or coated prior to final dispatch. These are exported globally and MFL products can be found in many areas of Australasian equipment manufacture.” End of quote.

The company annually pours several thousand tonnes of high-quality iron castings. Photo/Getty Images.

Precision Steel has operated from the Auckland site since 1941 and now has fallen at the feet of a government which has no understanding of the industry’s precarious position in a global market.??Quote.

Ayers said the company was challenged by the high New Zealand dollar, and a plant failure that reduced production for 10 months.

Tight margins meant the company was unable to reinvest in the ageing plant, he said.

“MFL has exhausted its financial reserves.

“We have absolutely tried our hardest but ran out of options to get through.” End of quote.

The New Zealand dollar cannot seriously be considered a reason when it’s been higher in the past, but tighter margins in the wake of serious competition from China is the likely reason for its failure.? We are not competitive in the global manufacturing market, and this needs to be addressed.?

New Zealand is inundated with cheap, inferior Chinese products and we probably don’t even know which products their widgets, parts and sub-parts lurk in until the product fails.??

The United States under Trump protects its own and Trump has weakened China in order to look after his own US manufacturing market.

Earlier this year Trump imposed a 25% tariff on our machinery exports, at the same time giving an exemption to Australia because of their robust relationship with the US.??Thanks to Jacinda’s childish behaviour on the international scene, the New Zealand export manufacturing industry was dealt a serious blow.

Jacinda and the Coalition of Losers appear unable to get their heads around the importance of fostering global relationships for our exporters and improving the business confidence of local manufacturers.

Radio NZ reported in October. Quote.

Business confidence has fallen to a nine-year low, as firms fret about government policies, higher costs, softer demand and weaker profits.

….firms no longer expect profits to improve because they could not fully pass on rising costs to customers, and they were cutting back on investment and hiring.” End of quote.

This is the result of a government that has no understanding of real business and global markets.?They don’t recognise the dying golden goose as it lies gasping for breath under their boots.