March 9, 2016

Fonterra in discussions to close down New Zealand production site

Fonterra has met with staff at its Kaikoura site in early March as consultation starts on a proposal to permanently close the site.

Mark Leslie, Director (New Zealand Manufacturing), said that Fonterra will be discussing the proposal over the coming weeks, with a decision expected in mid-March.

"This is a difficult process for our people and supporting them is our priority as we work through the details," said Leslie. "We will be discussing all options and opportunities available to our staff about their future employment, as well as providing the support they need to make decisions should the closure go ahead."

Fonterra Kaikoura employs 22 full time staff and typically operates between three to five months a year producing a small volume of specialty cheese. Moving this production to other sites would bring significant cost savings for the business and its 10,500 farmer shareholders.

"The proposal to close the Kaikoura site has not been made lightly and is one intended to help generate cost savings for the benefit of all Fonterra farmer shareholders," Leslie added.
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