- Alliance proposal would close the Smithfield plant in Timaru by the end of the year.
- Workers called to surprise meeting, 600 jobs are at stake.
- Company blames changing land use and lower stock numbers.
Timaru locals are devastated after Alliance Group announced the proposed closure of the Smithfield plant, which employs 600 people.
The company, which has owned the plant since 1989, blamed land-use change on the potential closure.
If the proposal is confirmed, sheep meat, calves and night shift venison processing would cease at the South Canterbury plant.
Alliance would continue venison processing at the plant until no later than December 31, when the company expected to have alternative arrangements for deer.
One employee who had been working at the plant for 17 years told the Herald older employees would be okay, but the closure was devastating for younger employees and those in the wider region.
Another employee said the company was more like a family.
“We support each other, support different cultures, learn different skills.”
Timaru District Mayor Nigel Bowen said the full closure of the plant would hit the town’s economy hard.
“This is massive. This is a town that has been built on these two freezing works,” he said.
Several employees told the Herald that rumours have been floating around for a while.
One man said, ”It was something we have always expected, but when it actually happens, it’s actually shocking”.
Another said, “The writing has been on the wall for long enough.”
Prime Minister Christopher Luxon said the closure would be “quite a shock” for the community and the individuals involved.
He said the organisation would have had to deal with economic challenges like inflation.
“This is sadly the consequence of that.”
He said the red meat sector was going through some consolidation and that’s why it was important to focus on trade deals internationally.
“It is going to impact Timaru. Certainly, this will be a shock to individuals as they process that information.”
Alliance chief executive Willie Wiese said the proposed closure was due to a decline in sheep processing numbers due to land-use change, which has resulted in surplus capacity in the company’s plant network.
“This proposal aims to align our operations with current livestock availability, ensuring we have the right scale and cost structure to meet future demands as a leading red meat processor.
“By optimising our capacity to match livestock flows, we can position ourselves for long-term success and reduce our cost base. We simply cannot maintain excess processing capacity when livestock numbers don’t support it.”
Alliance reported a loss before tax of $97.9 million for the year ending September 2023.
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