The demise of the Apex plant, which opened in 1971 as Cooper Tools, has devastated its former long-serving Albury-based chief executive Peter Reynoldson.

Now retired and living in Brisbane, Mr Reynoldson was dumbfounded when he learnt of the plan to shut the factory by next March with the loss of 50 jobs.

"I was in absolute shock and it doesn't make any sense whatsoever," Mr Reynoldson said.

In flagging the closure in July, Apex managing director Tim Ohlback cited trading conditions for the move and said tools made in Albury would now be imported, with administration and sales positions in Sydney.

Mr Reynoldson said it would be more efficient to retain operations in Albury and questioned the rationale for the move.

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"That business in Albury is the best in the world on service levels, logistics, production," he said.

"This is all about the appointment of CEOs in northern Sydney wanting to have a head office where they live.

"The best location is Albury-Wodonga.

"I was there for 35 years, 25 years as CEO and deputy chairperson in Investment Albury Wodonga and I was going to people like Visy and Telstra and boosting up Albury-Wodonga as the best location and it was."

Mr Reynoldson said geography meant the Border was more advantageous than Sydney when dealing with hardware chains looking to buy tools.

"They've got basically no big customers left in Sydney," he said.

"All the big customers like Bunnings, Home Hardware, Total Tools, Mitre 10 - their national is in Melbourne so it's selfishness putting those people in Sydney, whereas in Albury you would be able to drive to Melbourne."

Mr Reynoldson said having spoken to former staff at the factory they were "absolutely bemused" at the move.

"They just can't understand how the relocation of sales and warehousing to Sydney could possibly pay for itself," he said.

This week South Pacific Laundry announced it would no longer be washing linen in North Albury and last week Nestle revealed it was halting Vita Brits production at its Wahgunyah factory.

Indi MP Helen Haines this week spoke to Nestle head of corporate and external affairs manager Margaret Stuart and was comforted that the company was putting $12 million into manufacturing at the site, but nevertheless upset at the redundancies.

"From my perspective the loss of 32 jobs is not the news you want to hear in an economic downturn and not the news you want when you've seen a 68 per cent uptick in job seekers since March," Dr Haines said.