Premier sale may amplify exports

STEADY GROWTH: No job cuts are expected at Premier Beehive, which has been purchased by a Brazilian meat processing company and changes hands this week.

It is business as usual at Premier Beehive's Carterton plant today, despite the fact the company - one of the biggest employers in Wairarapa - is changing hands this week.

The company and its Australian owner, Primo Group, have been sold to Brazilian meat processing giant JBS, who bought out Primo earlier this year in a $1.5 billion takeover.

Premier Beehive managing director John Kippenberger said it was unlikely there would be any job cuts at the Carterton plant.

"We don't envisage any job cuts, in fact all we see is that some of the capital projects that we have had planned will be able to be brought forward."

JBS has no other business in New Zealand, so it was unlikely the plant, which employs about 200 staff, would be consolidated, Mr Kippenberger said.

"The ownership of the company changes but other than shareholder structure we don't see any change to the business."

JBS, which has an annual turnover in the region of US$50 billion ($66 billion) and operates in North America, Europe and Australia, could help Premier Beehive expand its exports, Mr Kippenberger said.

"We see it as a positive, as they are the largest beef company in the world so they have got large resources around the world. We see it helping with our export push in Hong Kong and Singapore - with their resources, that can only support our export endeavours."

Premier Beehive began exporting to Hong Kong last year and is now expanding into other countries.

Premier Beehive had shown strong growth over the last three to five years and was hoping to increase its capacity and improve its packaging as well as adding new products, Mr Kippenberger said.

"We've had good steady growth and we see that growth rate continuing, if not increasing, in a couple of areas."

The company was formerly owned by Mr Kippenberger, the Reid family and Bancorp New Zealand before it was sold to Primo about two-and-a-half years ago.