Wattie's faces a $1m-plus bill from broken pipeline

Wattie's could be hit with more than $1 million in production costs and overheads after floodwaters wrecked a gas pipeline supplying its two Hastings factories.

Wattie's said it had shut down the boilers at its King St and Tomoana plants after NGC Holdings' pipeline over the Pohangina River was swept away on Monday.

Wattie's managing director Nigel Comer said the shutdown came as the plants approached peak seasonal production.

"The real risks are that we will have to bypass crops that become overripe, which could be disastrous for growers," he said.

Wattie's spokesman Paul Hemsley said that down-time cost the plants about $180,000 every 24 hours, and production had already been down that long.

NGC yesterday said it could take seven to 14 days to repair the pipeline, which feeds some 6000 customers in Hawkes Bay and eastern Wairarapa.

"Until the river level has dropped sufficiently to allow better access to the pipe in the river ... NGC is unable to determine the best approach to its repair," the company said.

If the two Wattie's factories were non-productive for seven days it could cost $1.26 million, or more.

One thousand workers at the factories were currently working on non-productive jobs - cleaning up and the like, Hemsley said.


Comer said the company was "working to mitigate the effects, but obviously if the plants are not operating we have to stand down most staff and suspend harvesting of crops like corn, tomatoes and beetroot.

"The pipeline is critical to the Hawkes Bay economy, and the longer businesses like ours are out of action the deeper the distress of staff and growers particularly," he said.

NGC said it was investigating the feasibility of a temporary pipe over the river, possibly supported by pontoons.

It would be at least two days before an inspection and safety assessment could be carried out.

Gas still in the pipeline had been reserved for Hastings' hospital and other emergency services.

- NZPA