Mainland to close Oamaru factory

DUNEDIN - Staff at Kiwi Meats, the Mainland Products plant in Oamaru, have been told the factory will close in February.

With record low unemployment in the Waitaki district, community leaders are trying to be positive about the closure of one of the town's larger employers.

While no announcement was made publicly by Rank Group, and manager John Walker said he was not authorised to comment, staff were told at a meeting yesterday.

Otago-Southland New Zealand Meat Workers Union president Daryl Carran confirmed the plant would close on February 24, affecting about 73 permanent staff and some part-time staff.

Under a $1.17 billion branding reshuffle between Fonterra and Rank Group, the private investment company of billionaire Graeme Hart, Rank (under New Zealand Dairy Foods) obtained Meadow Fresh milk and beverages, Tararua brands, yoghurts, Kiwi Meats, fresh milk deliveries and food services and distribution services in August.

Mr Carran said it appeared there could have been some duplication in existing meat sites and Rank Group was looking at consolidation.

There could be opportunities at the company's meat plant at Frankton, in Hamilton, for a "minor" number of people.

The history of the Oamaru plant, originally known as Frasers Bacon, extended more than 80 years, Mr Carran said.

The factory produced predominantly bacon and ham goods.

Waitaki Chamber of Commerce president Fraser McKenzie said it was a significant loss for both employees and the community, and there were a lot of flow-on effects.

"It's a decision obviously made outside of the local district. It's hard to see how anything could have been done to prevent it."

He was confident there would be opportunities for work.

- NZPA