Layoffs to follow factory fire
A major North Canterbury employer will be forced to make an unknown number of redundancies after a devastating factory fire.
Australasia’s largest drill bit manufacturer, Sutton Tool NZ, suffered catastrophic damage in its main manufacturing facility after a fire engulfed the building last week.
The blaze was so fierce one nearby resident described feeling a heat blast on his face after one explosion, and up to 40 houses had to be evacuated to a nearby school because of the risk of toxic fumes.
Kevin Donovan, general manager of the Kaiapoi site, said while it was too early for the company’s Australian owners to make any decisions about re-building the factory, there had been discussions on the future of its 100 employees.
Donovan confirmed to Stuff some employees would be made redundant, but he was unsure how many staff members would be impacted.
He said the company had ‘‘good old-fashioned’’ redundancy packages and was optimistic a number of employees would find new jobs because of the skilled labour shortages in Canterbury.
Donovan said they had been so overwhelmed with job offers from local businesses, that they have had to assign an employee to help match staff with prospective employers.
‘‘We’ve had in excess of 140 job offers. It’s really highlighted the skill shortages there are.’’
Australian owned, Sutton Tools has a head office in Melbourne and a manufacturing base in Maryborough, a small town similar in size to Kaiapoi, two hours from the city.
Donovan said some fitters and turners and packers were being offered the chance to relocate to the Australian arm of the company in the short term, which would help them to retain specialised staff.
‘‘Quite a number have put their hand up to go to Australia.’’
Operating since 1962 when it was known as Patience and Nicholson, Sutton Tools NZ was considered an icon in North Canterbury. It also has an office in Auckland.
Following the blaze, fire investigators have been trying to determine the cause and the site has not yet been handed back to the owners.
The handover has been further complicated by the need to remove asbestos – a proven carcinogen in humans.
Donovan said this had delayed the company’s ability to assess the feasibility of rebuilding on site. However, engineers were beginning to build new manufacturing machines in a building that was not damaged by the fire.
The fire also caused a product called quenching fluid to leak via stormwater drains into the Kaiapoi and Waimakariri rivers.
Designed to rapidly control the cooling of steel or other materials as part of the hardening process, the fluid produced oil slicks on the surface of the rivers.
It sparked a major clean-up by Environment Canterbury and led to many ducks needing to be rescued after they were covered in oil.
Waimakariri district mayor Dan Gordon said the damage to the factory was devastating news for Kaiapoi.
Gordon said his thoughts and those of the council were with the 100 employees and said he had reached out to the factory manager to offer support.
Waimakariri MP Matt Doocey said Sutton Tools had been a proud local employer in Kaiapoi and said the fire was a ‘‘cruel blow’’ to many families in the area.