REL: 1000 HRS Rakon Limited
GENERAL: RAK: Update on the Proposed Closure of Rakon UK Operations
5 MARCH 2014 (RAK)
UPDATE ANNOUNCEMENT ON THE PROPOSED CLOSURE OF RAKON UK OPERATIONS (LINCOLN)
On 16 January 2014, Rakon Limited (NZX:RAK) announced its intention to enter
consultation for a proposed closure of its Lincoln, UK plant. Following a
collective consultation with Rakon UK Limited ("RUK") employee
representatives, the Rakon Board of Directors ("Board") has confirmed its
decision to the representative committee to close the Lincoln plant.
The company will now enter a period of individual consultation for those
"RUK" positions deemed at risk. The outcomes of the individual consultations
will determine the timeline for the proposed closure.
The decision to close the Lincoln, UK plant follows a review by the "Board"
determining that duplicate overhead structures and manufacturing capability
exists between the Lincoln and New Zealand operations. The proposal is for a
full closure of the plant, with the manufacturing of products to be shifted
to Rakon's New Zealand plant. Rakon will continue to maintain a research &
development centre in the UK, based at Harlow.
Previous guidance and impacts from the proposed closure on current FY2014
earnings, remains intact.
Chief Financial Officer
Rakon (09) 571 9323
End CA:00247832 For:RAK Type:GENERAL Time:2014-03-05 10:00:43