Fonterra has indicated that up to 110 jobs are on the line at its Canpac site in Waikato, as the dairy cooperative focuses more on paediatric nutritionals there.
The move would mean Canpac operating 24 hours-a-day, Monday-to-Friday, instead of the current seven days a week operation.
“We’ve undertaken a thorough review of the site and looked at where to focus the business after some of Canpac’s volume was reduced, and have been considering options to make the site run more efficiently and a better fit with our strategy,” Fonterra’s director of New Zealand operations, Robert Spurway says in a statement.
The proposed changes could mean 110 roles may not be required at the site, which currently employs 330, he says.
“This is not a decision we have taken lightly and we are working through a consultation process with our people around the proposal. This will be a blow for our people and we will do everything we can to work with them to find new opportunities at our other sites in the Waikato and further afield should they need them."
Mr Spurway says the cooperative employs about 2000 people in Waikato and has invested more than $150 million in the area in the past three years.
“We are continuing looking at where we can further invest in the Waikato but have to make decisions based on what aligns with Fonterra’s strategy and will drive the greatest returns to our farmer-shareholders.
“We have invested heavily in our foodservice business, spending $120 million on a new UHT [ultra heat treatment] plant at our Waitoa site and $30 million on a cream cheese plant at Te Rapa, which combined have created 90 permanent jobs, on top of the hundreds involved in the construction,” Mr Spurway said.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Aussie Rich List – where are the Kiwis?
- NZ dollar falls with Aussie as Moody's China downgrade mulled, commodities weaken
- MARKET CLOSE: NZ shares rise, led by F&P Healthcare, Sky TV; Ebos falls
- Top lawyer on gardening leave after 22 years at Russell McVeagh
- Watson’s Bendon finalises takeover of Naked
Most listened to
- It’s "odd" StuffMe applicants are "so sensitive about anonymous submissions," says competition lawyer Andy Glenie
- Andrew Little, James Shaw, Steven Joyce and Bill English all weigh in on how good the budget was for Kiwi businesses
- Rob Hosking does not think it's good enough the Budget has left out reduced taxation on savings
- Lawyers are playing musical chairs in this week's Briefcase with John Bowie
- NBR Radio: best of the week ended May 26, with Grant Walker