Nelson apple processing facility to relocate to Hastings

Friday, 6 March 2020

Cedenco Foods will relocate their apple processing from Nelson to their existing Hastings site at the end of the 2020 season.

Over 100 jobs will be lost to Nelson after the closure of the Cedenco apple processing plant.

The factory was bought by Cedenco Foods NZ Ltd (Cedenco) in 2018 after T&G Global was forced to sell it.

Cedenco currently employs 29 permanent workers and up to 100 seasonal staff at the Nayland Rd factory, most of them Nelson locals, but at the end of the 2020 season the plant will be shut down and relocated to Hastings.

Apple processing, turning apples not fit for grocery or export markets into juice, diced apples, and other products, will continue 'at full capacity' throughout the 2020 season.

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Apple processing is moving out of Nelson, three years short of the factory's 60th anniversary.

The factory has been operating as an apple processing plant for 57 years, but has had a troubled few years.

It was formerly owned by Turners and Growers (T&G), who were forced to sell the factory despite restructuring in late 2017 which saw 26 people made redundant.

Cedenco CEO Joe Nelson said the decision to relocated was 'a very difficult one to make', and acknowledged it was a blow to Nelson city to lose the factory and any workers who chose to relocate with it.

T&G, formerly ENZA, sold the factory to Cedenco in 2018. (File photo)

'However, the Nelson factory, which was built in 1962, has reached the end of its service life as an apple processing facility,' he said.

'We have looked at all short and long term options that would enable us to continue processing in the existing facility, or to replace it within the district, but unfortunately none of these options are available before the current lease expires.'

He said the 'greatest disappointment' in the decision was the effect the relocation would have on staff.

'We have really enjoyed working alongside them and we hope as many of them as possible will take up our offer of relocation to Hastings, even though if they do move there it would be a loss for the Nelson community.'

Cedenco was offering a 'full package' to support any workers who chose to relocate, Nelson said, but he acknowledged that many of the permanent and seasonal workers had been located in Nelson city for years and relocating was not possible for all of them.

He said Cedenco was 'very aware' of the potential negative impact the relocation of processing could have on local apple growers, and said Cedenco was still 'in discussions' with Nelson Tasman stakeholders about the possibility of co-investing in a new multipurpose site.

Cedenco has an existing site in Hastings, also acquired in 2018, and Nelson said they would be constructing a 'state of the art' building there to expand the Hastings apple processing operations.