Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra to invest $30 million in Takaka rebuild

Fonterra to invest $30 million in Takaka rebuild

Fonterra today announced its final plans for re-establishing milk-processing operations at its Takaka site, damaged by fire last month.

Fonterra General Manager New Zealand Manufacturing Brent Taylor told staff at a briefing this morning that the company would be spending close to $30 million to refurbish the site's milk powder plant so it had sufficient capacity to process milk from the Golden Bay catchment.

The company would not be rebuilding the butter hall or the casein plant, Mr Taylor said.

The planned changes to the site's configuration as part of the refurbishment meant approximately one-third fewer staff would be required at the Takaka site. Fonterra's human resources team and other support staff were already talking to employees and union representatives and working through a range of options focusing on redeployment opportunities, Mr Taylor said.

Mr Taylor said a number of factors had been taken into account in deciding the site's final configuration.

"We appreciate what this decision means to the community, and we have taken various environmental, social and economic considerations into account.

"We were quick to commit to maintaining a presence in Takaka. Partly that reflected this region's unique geography and the difficulties in transporting milk from Golden Bay to be processed elsewhere, but we were also very aware of the need to take a broad view of our place in the community in deciding the site's future," he said.

"We are very conscious of the long-standing presence the dairy industry has had in Golden Bay, and of Fonterra's position as a major employer in the region. Board and management received a number of letters from shareholders and others outlining the economic and social impacts a complete withdrawl by Fonterra would have had on Takaka and the surrounding area, and these considerations were an important part of our decision. But, given the low volume of butter and casein we previously manufactured here, the cost of replicating the old manufacturing set-up simply could not be justified, and moving to milk powder production was the best option overall," Mr Taylor said.

Mr Taylor said every assistance would be given to all staff affected by the changes.

"Opportunities exist for redeployment within the company, and we are also working closely with local employers and government agencies to identify other employment options in the region. We will continue to make available all the support we can to help our people find suitable alternatives."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news