Dunedin fellmongery closes, 60 jobs lost

The Graeme Lowe fellmongery in Dunedin closed yesterday with 60 people out of a job.

Managing director Andrew Lowe, of the Lowe Corporation, blamed the closure on the drop of South Island stock numbers by 4.3 million this year and China buying preserved hides over those processed in New Zealand, the Otago Daily Times reported.

In 2005 the company spent $4 million upgrading the plant with plans to nearly double its output.

A staff member said workers were "stunned" by the news, having expected only a downsizing of the business.

New Zealand Meatworkers related Trades Union spokesman Daryl Carran said most staff had reasonable redundancy cover which would be paid tomorrow.

The closure followed the loss off nearly 200 jobs with the closure of two Gisborne companies at the weekend.

- NZPA