Wellington, Oct 23 NZPA - The closure of Christchurch's Bridgestone tyre factory has left many workers devastated, their union says.

The closure, set to take place at Christmas, will see 275 people lose their jobs.

Bridgestone Rubberworkers union secretary Kerry Pearce said the company had said it would pay out full redundancy and holiday entitlements.

Workers had a redundancy agreement of seven weeks pay for the first year of employment and two weeks for each following year, uncapped. ` `There's a lot of history on this site with some members having worked here forty-five years and some being the second and third generation of their families to have worked here, so it is a very sad day for all of us."

Many of the workers were devastated, Mr Pearce told Radio New Zealand.

Bridgestone had also said it would help staff find other employment, he said.

"They are going to speak with support services and they are getting hold of government departments to come and chat with people.

"There's a lot to be negotiated between now and closure, actually."

Engineering, Printing and Manufacturing Union assistant national secretary Ged O'Connell said the announcement was a blow to workers.

"We're not happy with the way this has been done just hours before Labour weekend started..."

Bridgestone's owners in Japan announced the closure of two plants today, blaming intensifying cost competition globally. The other plant to close is in Adelaide, Australia, where 600 jobs will be axed.

The Papanui plant is one of the biggest employers in the Christchurch area. The factory opened in 1947 and produced the first tyre in New Zealand.

The decision was explained to all employees and unions at both plants this afternoon, Bridgestone Australia said in a statement.

The company said it was a difficult decision to make.

"Despite continued efforts to improve cost competitiveness at both plants, international competitive forces have been making tyre manufacturing in Australia and New Zealand increasingly difficult to the point where the operations in both countries are no longer viable," the company said.

Bridgestone's distribution, customer service and retail networks, which employ more than 1500 people, will continue unaffected.

Affected employees would receive their full entitlements and the company is working on a range of initiatives to assist employees.

"We would like to express our thanks to all our employees at our manufacturing facilities in both countries. Their contribution over so many years is to be admired and celebrated," senior executive director Andrew Moffatt said.

The company also operates three retread factories in New Zealand, according to the website.

"It is our goal to help as many of our employees as possible gain alternative employment, either within the Bridgestone organisation or in the wider marketplace,' Mr Moffatt said.

Bridgestone is working with local government in Adelaide and Christchurch to gift some land to recognise the "enormous contributions" of the communities.

Bridgestone Corp is Japan's biggest maker of tyres.