SUVA (Pacnews) — Fiji’s largest brewery is to temporarily close its factories as major businesses start reacting to the impact of the downturn in the economy due the military take over last year.
It comes as the Reserve Bank of Fiji warned the economy could contract further.
The Foster’s Group Pacific Limited has announced it will temporarily close its plant in the western town of Lautoka for a month from next week.
General manager Ross Shaw said the plant will close from next week and re-open on June 19.
Citing the downturn in business and very difficult trading conditions, Shaw said the measure is being taken “as very difficult trading conditions have been experienced by the business since early December 2006.”
He said the closures of the plant is “in addition to existing cost measures in place.” Shaw said the company’s sales offices at Lautoka and Suva will remain open for business during normal office hours.
“Our bond stores are fully stocked and we assure our customers there is adequate stock for sale during the production shutdown. Our production staff will be on paid leave during the closure of our plants,” said Shaw.
Shaw said the measures are necessary to further cut the company’s costs in business. The economic situation continues to slide downwards and has already forced many businesses to take costing measures.
An increasing number of employees have been made redundant and told they will be re-employed if the economy picks up.
Fiji Employers Federation chief executive Ken Roberts said other manufacturing plants have introduced similar cost cutting measures to the Fosters Group.Roberts declined to disclose names of the manufacturing plants. But, he said, the federation hoped tourism arrivals would increase.
“I hope tourism comes back with a rush,” he said.
University of South Pacific economist Doctor Mahendra Reddy has said the country must target a real growth rate of 5 to 7 percent.
“Realistically, unless we resolve some of the fundamental problems that we are facing, we will have difficulty even getting a two per cent growth next year,” he said.