Blinds and shutters manufacturer Kresta will make 72 workers redundant and move its venetian blinds manufacturing to Asia, as part of a ‘strategic review’ which will see the company streamline its Australian operations to save costs.
The Western Australian company says the review will help to reduce costs, improve product ranges and provide greater flexibility in meeting market demands.
Kresta will outsource its venetian blinds manufacturing to “high quality” manufacturers in Asia, making 72 of its 1,000 Australian workers redundant. The company plans to spend $460,000 in redundancy costs over the coming months.
Kresta will also consolidate its curtain production to Curtain Wonderland’s Brisbane operations, and move its Jandakot production to its Malaga headquarters. The company expects to make $5 million by selling its abandoned facilities.
The manufacturer will ramp-up production at its Malaga, WA facility, and plans to invest in automated manufacturing equipment for the site.
Kresta’s chairman, John Molloy, says the business is consolidating its operations so it can focus on making better-quality products.
“The over-riding factor in implementing these changes has been ensuring the quality that has been a mainstay of Kresta’s success over the past 40 years is maintained and that our product range is enhanced,” he said.
“While we have identified an offshore facility that will provide some of our products, we will continue to be a substantial manufacturer in Australia, with production facilities in Perth, Brisbane and Melbourne.
“We are improving some of these facilities and making them more efficient to ensure the ongoing development of our product range.
“For our customers, these changes will ensure the quality of Kresta’s products. They also improve our ability to respond quickly to market trends, ensuring our customers have access to the best possible range of window furnishings available in the Australian market.”
Kresta doesn’t expect any further redundancies as a result of the business review.
The company will announce further information at the end of August, when it releases its full-year financial results to its shareholders.
Kresta has been operating for 38 years in Australia.