130 jobs to go as PPCS closes Waikato meat plant

South Island-based meat company PPCS says it will immediately close its plant in Tirau, South Waikato, axing 130 jobs.

PPCS chief operating officer Keith Cooper said the Tirau plant, which processes lamb, mutton and bobby calves, was the smallest in the company, but had relatively high compliance and maintenance costs.

PPCS, which has in recent years moved into the North Island mainly by taking over the former Richmond company, said the decision was based on rising costs. Changing the effluent system alone would have cost $1.5 million.

Currently, treated effluent from the plant is spread on nearby farms, but Fonterra has said it will stop accepting milk from cows on effluent-treated land from June next year.

Staff said the plant had been going backwards for the past couple of years.

Last week, when a possible closure was signalled, seasonal worker Derick Blank said the buildings had not been maintained, and some boards had rotted away and not been replaced.

PPCS said it hoped to re-employ as many staff as possible at other company plants.

- NZPA