Sandford to close Tauranga site, 65 jobs to go

Wednesday, 5 August 2020

Sanford chief executive Volker Kuntzsch said Tauranga had been an important base for the company and it was unfortunate circumstances ‘have pushed us down this path.’

Seafood giant Sandford is proposing to shut its Tauranga fish processing plant in a move that could see as many as 65 jobs lost.

In a statement the company said the closure proposal was the result of both Covid-19 affecting the amount of fish it has to process from other companies and the buildings not meeting new seismic strength requirements.

Chief operating officer Clement Chia said even if processing volumes eventually return to pre-COVID levels, the seismic issues with the buildings and surrounding area mean it is not viable to continue at the Tauranga site.

“We are very sorry to have to take this path,” she said.

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“Until very recently we had been planning a strong future for our Tauranga team. 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 shortened that timeline.”

Sandford chief executive Volker Kuntzsch, however, said the company intended to retain some operations in Tauranga.

“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,” he said.

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

“Tauranga has been an important base of operations for Sanford and we have enjoyed being part of the community there. It is very unfortunate that circumstances have pushed us down this path.”

Sanford has operations at eleven sites around New Zealand and has completed seismic surveys for all of them, following the Christchurch and Kaikoura earthquakes.

Most of its buildings will require some remedial work, but the company has no intention of closing any of its other New Zealand processing bases.

Kuntzsch said its Auckland processing site will require some short-term work, but it has already been brought up to the necessary earthquake standards. Sanford’s long-term plan is to eventually replace its factory there with a brand-new facility to add further capability to widen the range of its seafood offerings.

Sandford, which employs 77 people at the Bay of Plenty site, also said it is working with affected staff to try and minimise the number who are impacted.