UPDATED: 6.24 AM Cavalier Bremworth said it's closing its Christchurch plant and downsizing its operation in Whanganui to help future proof the business.

LISTEN ABOVE: Shamubeel Eaqub speaks to Mike Hosking about the Cavalier Bremworth job losses 

The company said: "to realise greater efficiencies Cavalier will move its woollen yarn spinning operations from Whanganui to its Napier plant" as a result of the downturn in demand for woollen carpets.

MORE: Cavalier Bremworth staff face job cuts as ChCh plant moves to Napier

Meanwhile the felted yarn operations will move from Christchurch to a bigger plant in Whanganui, with the possibility of more than 100 redundancies across the company.

However the move will see 40 jobs come to Whanganui.

CEO Paul Alston said they're making the changes to create stability in the future, and the decision to cut jobs hasn't been made lightly.

"We've been doing this review for some time to figure out what's most optimal for us going forward, and because of the nature of people losing their jobs these decisions haven't been made lightly."

Mr Alston said it doesn't make economic sense to keep Christchurch's Radford Yarns Plant open, because its too small, and the lease runs out next year.

But First Union said it's unrealistic to expect workers at Cavalier Bremworth's Christchurch plant to relocate to Napier or Whanganui.

Southern Secretary Paul Watson said the Christchurch workers are being given the chance to apply for 39 new jobs at the company's other two plants - but he said it will be a big ask to have someone move their family.

"I was just talking to one member - his wife and daughter is at university, son's in year 13 in high school, you just can't easily uproot and just go 'ok we'll take a job up in Napier."

Mr Watson said the news came out of nowhere for the workers.

"These workers in Christchurch have done a tremendous amount of hard work to get this business up to where it is. The irony here is the business is very successful, so the business is carrying on, it's just going to be in a different island."

Whanganui mayor Annette Main said the company is a major employer in her city and the restructure could have a major impact.

"If we do end up with the worst case scenario that's serious. 68 well paying jobs in Whanganui is large for us."

Ms Main hopes the final job cuts will be low, and workers will be able to find other jobs relatively quickly.

She wants to know what jobs might be available to suit their skill sets, and other agencies will also be involved.

Economist Shamubeel Eaqub said the ongoing job losses will lead young generations to study and work elsewhere.

"It's this drip, drip, drip of one industry losing jobs this year and another industry losing jobs next year. The cumulative effect of that is young people vote with their feet."

He said there'll never be a reprisal of the past glory days of New Zealand manufacturing, and businesses will need niche value-added products.

Hawke's Bay Chamber of Commerce chief executive Wayne Walford said the region is an attractive place to do business.

"There's a great lifestyle for staff, huge opportunities, we have a great port. All of those things I think, work in our favour.

"It's a great opportunity for Hawke's Bay and we're seeing a fair bit of that happening right now as the region gains more popularity across the country."