Sanford proposes Tauranga fish processing plant closure in New Zealand

New Zealand-based seafood company Sanford has announced its proposal to close its Tauranga fish processing plant at the Bay of Plenty site.

The proposal to shut the plant could result in 65 job losses.

Sanford is working with affected staff and intends to minimise the number of affected employees.

Factors such as the impact of Covid-19 and the buildings at the plant, which do not meet new seismic strength requirements, have forced the company to take this decision.

Sanford chief operating officer Clement Chia said: “We had installed a second processing line at the end of last year, but in 2020, our fish processing arrangements were not only hit by the impact of Covid-19 but we received the results of seismic engineering reports showing that the site was not viable in the long term.

“We would have needed to rebuild or move out within the next few years. The pandemic has unfortunately moved up that timeline.”

Chia added that even if the processing volumes return to pre-Covid levels, other issues associated with the building and surrounding area would not be viable for the company to continue operations at the Tauranga site.

Sanford currently operates 11 sites across New Zealand and also completed seismic surveys for all its facilities after Christchurch and Kaikoura earthquakes.

Sanford chief executive Volker Kuntzsch said: “We would continue to unload seafood at the Tauranga site under the proposed arrangements and we plan to retain a number of staff in that area.

“We are entering a period of consultation with our team and we will not know the final configurations until that process is complete.”

Kuntzsch added that although the company’s Auckland processing site requires some short-term work, it has already been brought up to the necessary earthquake standards.

Going forward, Sanford intends to replace the factory with a brand-new facility to add further capability to widen the range of its seafood offerings.