120 Hamilton Jobs at Risk as Fonterra Plans Facility Closure
Source: dairynews.today
Fonterra is planning to shut down its Hamilton canning and packaging facility, affecting around 120 jobs.
In a significant move, Fonterra has announced that it will close its canning and packaging facility located on Foreman Rd, Hamilton. This site, responsible for blending and packaging milk powders, employs approximately 120 individuals. The closure is scheduled for the end of July 2025. This strategic decision aligns with Fonterra's shift towards focusing on higher-value ingredients such as advanced proteins and medical nutrition.
"It’s been a tough day for all the team at the site," said Fonterra’s chief operating officer, Anna Palairet. She cited low product volumes and increasing production complexities as the economic challenges prompting the closure. Palairet emphasized that making such decisions is difficult, acknowledging the impact on the team. Fonterra plans to conduct a consultation process to explore redeployment opportunities for affected staff.
The Canpac facility currently packs up to 4,000 metric tons of powders annually, a fraction of the Co-op's total product volume. Palairet highlighted the co-operative's strategy focused on creating end-to-end value and enhancing returns for its farmer shareholders by leveraging strengths in ingredients and food services. "We believe the best way to achieve this is to focus on our strengths and scale in ingredients and food service, and we are prioritising our investment on the parts of our operations that are better suited to this," she remarked.
"It’s been a tough day for all the team at the site," said Fonterra’s chief operating officer, Anna Palairet. She cited low product volumes and increasing production complexities as the economic challenges prompting the closure. Palairet emphasized that making such decisions is difficult, acknowledging the impact on the team. Fonterra plans to conduct a consultation process to explore redeployment opportunities for affected staff.
The Canpac facility currently packs up to 4,000 metric tons of powders annually, a fraction of the Co-op's total product volume. Palairet highlighted the co-operative's strategy focused on creating end-to-end value and enhancing returns for its farmer shareholders by leveraging strengths in ingredients and food services. "We believe the best way to achieve this is to focus on our strengths and scale in ingredients and food service, and we are prioritising our investment on the parts of our operations that are better suited to this," she remarked.
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