KEY POINTS:
Meat processing company PPCS today confirmed both its Oringi and Burnside plants will close with the loss of more than 600 jobs.
PPCS chief executive Keith Cooper said the decision was finalised after consultation with employees and their representatives.
"We recognise that these decisions have a direct impact on local communities and people's livelihoods.
"The hard reality is that these closures are necessary to reduce excess production capacity in the face of a significant ongoing decline in livestock numbers," he said.
Mr Cooper said the company's aim was to provide long-term sustainability to the business and to shareholders.
The closure of the Oringi sheep and lamb processing facility near Dannevirke reflected an expected drop in North Island sheep numbers, he said.
The closure of Burnside in Dunedin - which processes venison, lambskins and deerskins - was a result of fewer livestock and an aging site.
Between the two sites 604 employees would be made redundant.
Mr Cooper said the firm would support employees and resource centres had been established in both Dannevirke and Dunedin.
"From there employees can access assistance in employment search and a range of support services including CV development, budget advice and counselling."
More than 400 seasonal vacancies in both the North and South Islands would be available next season, he said.
Facilities at Oringi were in seasonal shutdown and would not re-open while the Burnside plant would close by the end of August, he said.
Both sites would be decommissioned and sold.
Mr Cooper offered some reassurance to employees at remaining plants saying there was "sufficient capacity" and the "ability to increase processing throughput" in the future.
From Sunday the name PPCS would also be made redundant.
After a major rebranding exercise the firm would trade under Silver Fern Farms Limited.
- NZPA
