Fisher & Paykel makes $35 million from sale of plant

By Patrick Avenell

The sale of Fisher & Paykel’s Mosgiel facility has been finalised, with the New Zealand plant and property being sold to Fonterra Co-operative Group.

Announced this morning on the ASX, the sale has generated proceeds of approximately $34.7 million, which will be realised in the second half of the current New Zealand fiscal year. This represents a gain of around $9.4 million, which will be reduced to around $8.5 million after the taxman visits.

Under the terms of the sale, Fisher & Paykel will lease the property back from Fonterra until 30 June 2009.

Fisher & Paykel is currently in the process of moving a large proportion of its manufacturing to developing countries, including Mexico and Thailand. As part of this restructuring, the group currently has its Cleveland, Australia plant on the market.

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