Hundreds of jobs are on the line at a meat processing plant in Timaru.
A proposal to close the Smithfield plant in Canterbury has been tabled by Alliance Group.
Employees were told at a meeting today.
About 600 staff are affected by the proposal, a statement from Alliance Group said.
Staff from the Smithfield meatworks in Timaru head into a staff meeting (Source: 1News)
"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.
"If the proposal is confirmed, sheep meat, calves and night shift venison processing would cease at the Smithfield plant," the company said.
"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."
Alliance has owned the plant since 1989.
Willie Wiese, Alliance's chief executive, said: "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.
"By optimising our capacity to match livestock flows, we can position ourselves for long-term success and reduce our cost base.
Willie Wiese, chief executive of Alliance (Source: Alliance Group )
"We simply cannot maintain excess processing capacity when livestock numbers don't support it."
The 139-year-old plant is the company's oldest site and required "significant" investment to keep it operational, the statement said.
It also faces "encroachment" from retail development, the statement continued.
"We know our people at Smithfield, their colleagues and the local community will be devastated by this proposal," Wiese said.
"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."
Alliance posted a loss of $97.9 million before tax for the year ending September 2023 .
"Despite everyone's best efforts, these challenging conditions have persisted into 2024", Wiese said.
The company believed it can process sheep, deer and cattle at its four other South Island plants during peak season.
"Consultation will run until October 11 and a final decision is expected to be made by October 18."
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