New Zealand sheepskin tannery, G.L. Bowron, has announced that it is to cut 120 jobs at the end of the month.

According to the Canterbury Manufacturers’ Association, the redundancies at the Christchurch tannery is a consequence of New Zealand manufacturers having to compete with the cost base of low cost countries in the global market.

“Firms based here struggle to compete with low cost competitors and maintain large scale production facilities and a sizable employee base at the same time,” said CEO John Walley. He added that employment at the tannery had fallen from 700 to 200 in the last 18 months and that the company is now looking to develop high quality products and rebuild a future at the top end of the market but that this will take time.

Mr Walley urged the government to act, stating that, “Without government support, the options left for New Zealand companies will be to relocate their operations offshore.”