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Twenty-three Temuka cheese workers face either redundancy or relocation to Christchurch after their employer today confirmed the closure of the South Canterbury factory.
Dairyworks chairman Graham Heenan announced to staff this afternoon that the company had decided to move its operations from Temuka to Christchurch.
The Temuka factory was likely to close by the end of June, he said.
On Monday the company would commence discussions with its 23 full-time permanent staff about relocating to Christchurch and the timing of the closure, Mr Heenan said.
"There will be a gradual transfer of production from Temuka to Christchurch during May and June," he said.
Dairyworks had outgrown its Temuka premises and the significant limitations at the plant had affected productivity.
Moving to Christchurch would cut transport costs and time, and would remove double handling, Mr Heenan said.
The company, based in Temuka since 2001, marketed Rolling Meadow and Alpine brand cheeses.
It bought the cheese from the nearby Fonterra factory, as well as other manufacturers, then cut and packaged it.