No confirmation on closure

Keith Cooper
Keith Cooper
Meat company PPCS is neither confirming nor denying speculation that venison processing at the Burnside works in Dunedin may be closed and relocated to its Finegand site - with the potential loss of 100 jobs.

The possibility of redundancies in the struggling meat processing sector follows last week's confirmation of a loss of almost 500 jobs in Dunedin - 430 from Fisher and Paykel Appliances production staff and 50 from Tamahine Knitwear.

Several industry sources believe the ageing Burnside plant, which only processes venison, is earmarked to close in favour of a multimillion-dollar venison development at Finegand, which would be on top of a $12 million upgrade of its waste treatment plant as PPCS looks to consolidate its operations.

PPCS, which has been criticised this week for its withdrawal from a meat sector amalgamation proposal, made a before-tax loss of $48 million last year.

When contacted, PPCS chief executive Keith Cooper said under its "Rightsize'' project, all of the company's 26 plants remained under review, including Burnside and Silverstream at Mosgiel, having in March announced that fewer plants would reduce PPCS' overall operating costs.

Mr Cooper declined to comment on speculation surrounding the Burnside plant saying there was no timetable for a decision and the future of Burnside and Silverstream "will be considered when we get to them''.

In a letter to PPCS co-op shareholders, chairman Eoin Garden said the Rightsize initiatives would contribute to "industry rationalisation'', which would be achieved within the next six months, and PPCS "would not compromise in any way in industry consolidation, which we believe would ultimately take place''.

Sources have said April 29 has been mooted for announcement at Burnside, but the sources are conflicted on whether this will cover seasonal lay offs or focus on the plant's future.

New Zealand Meatworkers and Related Trades Union president Daryl Carran was aware Burnside's future had prompted a lot of discussion recently and workers were concerned about future prospects.

"The most vulnerable sites [for closure] are the single species killing sites,'' Mr Carran said.

He had made inquiries about Burnside's future with PPCS management but as yet had not been supplied any further information, noting a decision was more likely after the peak of the killing season.

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