International food company McCain has turned down a request from Hawke's Bay mayors asking for a pause on the factory's closure while growers try to find a solution for a possible takeover.
More than 100 growers are impacted by McCain closing its frozen vegetable factory in Hastings, a decision the company said it made after reviewing operations and being "unable to identify a sustainable pathway under the current model".
Last week, Hastings District mayor Wendy Schollum and Central Hawke's Bay mayor Will Foley wrote to McCain Foods requesting an eight-week pause on any major changes to the company's Hawke's Bay processing plant while growers explore the potential for an independent feasibility study into the future of the sector.
But McCain told RNZ it will not be doing that.
"McCain has advised the Hastings Council and the Central Hawke's Bay District Council that we are unable to commit to their request to pause the closure of our Hastings vegetable processing plant to allow an 8-week feasibility study of the industry to occur.
"Prior to receiving the councils' request, McCain had listed the site for commercial sale and a process is currently underway for the site's sale. Our Hastings team has already commenced decommissioning certain plant equipment," a spokesperson said.
McCain said since announcing the closure, it has been approached by several parties about the site, including from growers.
"We have engaged genuinely and constructively to respond to these parties' preliminary enquiries but these discussions have not progressed further.
"McCain understands this is a challenging time for the vegetable processing industry in the Hastings region. McCain remains committed to New Zealand and to supporting our Hastings team members," the company said.
Hastings mayor Wendy Schollum told RNZ it was not the outcome they had hoped for.
"Obviously we were hoping for a different response ... because the stakes are so high for our community here.
"McCain has now given us a clear answer and we respect that. The focus now has to be what options remain for growers, workers and the whole food processing sector," she said.
Schollum said growers were not deterred by McCain refusing to pause its process of closing down.
"There is a group of growers who are seriously looking at putting in a conditional offer and so our advocacy remains with working with government to see if we can get that support to give growers the confidence to seriously look at backing themselves in investing in our local economy in this way," said Schollum.
McCain said its potato operations and other ANZ facilities were not impacted by this decision, including the Timaru facility, and it would continue to invest in areas that strengthen its long-term presence in the region.
This story was first published on rnz.co.nz |  |
