Sealord proposes to close fish coating factory

Friday, 5 September 2025

Sealord is one of Nelson’s biggest employers, but says “hugely challenging” economic factors has led to its proposed closure of one of its factories.

Sealord is proposing to close its Nelson fish coating factory with the loss of 79 jobs.

The seafood company said on Friday it was beginning consultation with staff on the proposal that would see 57 roles lost in the factory itself and 22 management or office based roles.

In a statement Sealord chief executive Doug Paulin said many of the factory staff had been at Sealord for much of their working life and the team was “like one big whānau”. The company’s priority was providing support as staff worked through the process.

Nelson mayor Nick Smith said the announcement was a “further kick in the guts” for the region after this winter’s devastating storms and the closure of the Eves Valley sawmill, with the loss of 142 jobs that was confirmed on Thursday.

E tū union delegate Andrew Thompson said the closure announcement had left people feeling “shocked, angry, and let down”.

“People are asking how they’re going to pay the mortgage and what this means for their families, including those who have moved here from abroad. For some families it’s not just one income at risk, but several, with relatives also working at Eves Valley.”

Thompson said workers also feel betrayed by the timing of the company’s other proposals, as the news came alongside a separate push by Sealord to reduce basic entitlements for other staff across the Nelson site.

E tū national secretary Rachel Mackintosh said the proposal was a bitter pill to swallow and another blow to regional manufacturing.

“This is a shortsighted decision and another sad example of a company that is too willing to send Kiwi jobs overseas in search of greater profit. It’s devastating for the workers, for their families, and for the whole Nelson community that relies on these jobs.”

Paulin said Sealord had been affected by “hugely challenging economic factors” facing many manufacturing businesses in New Zealand that had been forced to close in recent times.

“Increasing operating costs, particularly labour and electricity, plus freight, exacerbated by requests for higher supermarket margins, means we must reconsider the way we manage our retail frozen branded business,” he said.

“Despite the best efforts and mahi of our workers, we may have to exit the frozen coated fish business that we have built up over many years.”

The coated factory produces crumbed and battered products such as battered hoki, fish fingers and crumbed dory fillets all year round. They are sold in New Zealand and Australia, and exported around the world.

Sealord chief executive Doug Paulin says the coated factory staff are like “one big whanau” and the company’s priority was to support them during the proposal process.

The factory is one of three at the Nelson site: a wet fish factory processes hoki in season from May to September and other species throughout the year, while a by-product plant processes discarded fish parts into fish oil and fishmeal.

Paulin said Sealord was reviewing its other land-based factory operations as the company looked at how to reduce operating costs and improve the economic sustainability of production in Nelson.

Sealord also announced a proposal for changes to the Nelson site collective agreement that covers union workers in those land-based operations including its wetfish factory, cold store, dry store and by-products plant.

The company was hoping to agree changes to the agreement that would “help keep Nelson land-based manufacturing operating”.

It was also investigating the possibility of processing and packaging coated products using Sealord-caught fish outside New Zealand.

The announcement follows a 12-month review of Sealord’s business. Office-based salaried roles had been disestablished or not replaced, and budgets significantly cut.

Smith said he was worried for the 79 workers facing the loss of their jobs, but also for the flow on impacts for the city and region.

Sealord’s fish coating factory produces battered hoki, fish fingers and crumbed dory fillets.

Sealord was Nelson's “most important employer”, with over 600 staff based here.

“Nelson needs Sealord to be successful and strong, and the focus over the next month needs to be on saving as many jobs as possible.”

He was also “very concerned” about the signal that other jobs may be at risk as the company looked at moving processing offshore.

“The announcement is just a further sign of how much manufacturing businesses in New Zealand are struggling with costs, and whether it be rates, water charges or electricity, we just have to be so careful that we're not undermining the capacity for businesses like Sealord to operate in New Zealand and in Nelson.”

Nelson MP Rachel Boyack said the proposed closure was distressing news for the workers, their families and the local community.

“I’ve met with Sealord to understand their challenges and remain worried about the major blow to Nelson’s local economy should they proceed with closure.

“Our community works incredibly hard and the last thing I want to see is more people struggling to keep up with rising food and housing costs.”

Paulin said Sealord was the last significant supplier of frozen coated fish products manufactured in New Zealand.

Staff consultation will close on September 26 with the company considering feedback before making a decision on both proposals in October.