New Zealand: Alliance Group’s Proposal to Close Smithfield Plant
Alliance Group has announced a proposal to close its Smithfield meat processing plant in Timaru, South Canterbury.
If confirmed, the proposal would mean that sheep meat, calves and night shift venison processing would cease at the Smithfield plant.
Alliance would continue venison processing at the plant until no later than the end of December, by which time the company expects to have alternative arrangements in place for deer.
Approximately 600 staff are impacted by the proposal for the Smithfield plant, which has been owned by Alliance since 1989.
If the proposal is confirmed following a consultation process, impacted staff, wherever possible, would be offered the opportunity to apply for re-deployment at the company’s other processing plants, however it is anticipated there would be a significant number of redundancies.
Willie Wiese, chief executive of Alliance, says the proposed closure is due to a decline in sheep processing numbers as a result of land-use change, which has resulted in surplus capacity in the company’s plant network.
“This proposal aims to align our operations with current livestock availability, ensuring we have the right scale and cost structure to meet future demands as a leading red meat processor,” Wiese says.
“By optimising our capacity to match livestock flows, we can position ourselves for long-term success and reduce our cost base,” he adds. “We simply cannot maintain excess processing capacity when livestock numbers don’t support it.”
“We know our people at Smithfield, their colleagues and local community will be devastated by this proposal,” says Wiese.
“Smithfield has a long and proud history, having been part of Alliance’s network for more than 30 years.
“Our priority is to support affected employees during this immensely difficult period. We will also work closely with local authorities and support agencies and ensure the local community is informed, supported, and included in discussions.”
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