F&P Appliances to restructure, close NZ & Aust plants

WELLINGTON, April 17 (Reuters) - New Zealand appliance maker Fisher and Paykel Appliances Ltd (FPA.NZ: Quote, Profile, Research) said on Thursday it was restructuring its operations with plants to be closed in New Zealand and Australia and a new plant to be bought in Mexico.

It said the restructuring would result in the loss of around 780 jobs in New Zealand in Australia with a one-off cost of around NZ$50 million ($39.7 million), which would be accounted for in the next financial year.

It said it expected to cover much of the cost by selling surplus assets in New Zealand and Australia but it expected to benefit by around NZ$50 million a year from the changes.

The company said it had agreed to buy a refrigerator manufacturing plant from strategic ally Whirlpool Corp (WHR.N: Quote, Profile, Research) in Mexico at a cost of $33 million.

Shares in Fisher & Paykel Appliances, a top 10 company, were untraded on Thursday, after closing at NZ$2.20 on Wednesday and ranging between NZ$2.12 and NZ$3.95 over the past year. ($1=NZ$1.26)