Fonterra to invest $30 million in Takaka rebuild
Fonterra today announced its final plans for re-establishing milk-processing operations at its Takaka site, damaged by
fire last month.
Fonterra General Manager New Zealand Manufacturing Brent Taylor told staff at a briefing this morning that the company
would be spending close to $30 million to refurbish the site's milk powder plant so it had sufficient capacity to
process milk from the Golden Bay catchment.
The company would not be rebuilding the butter hall or the casein plant, Mr Taylor said.
The planned changes to the site's configuration as part of the refurbishment meant approximately one-third fewer staff
would be required at the Takaka site. Fonterra's human resources team and other support staff were already talking to
employees and union representatives and working through a range of options focusing on redeployment opportunities, Mr
Taylor said.
Mr Taylor said a number of factors had been taken into account in deciding the site's final configuration.
"We appreciate what this decision means to the community, and we have taken various environmental, social and economic
considerations into account.
"We were quick to commit to maintaining a presence in Takaka. Partly that reflected this region's unique geography and
the difficulties in transporting milk from Golden Bay to be processed elsewhere, but we were also very aware of the need
to take a broad view of our place in the community in deciding the site's future," he said.
"We are very conscious of the long-standing presence the dairy industry has had in Golden Bay, and of Fonterra's
position as a major employer in the region. Board and management received a number of letters from shareholders and
others outlining the economic and social impacts a complete withdrawl by Fonterra would have had on Takaka and the
surrounding area, and these considerations were an important part of our decision. But, given the low volume of butter
and casein we previously manufactured here, the cost of replicating the old manufacturing set-up simply could not be
justified, and moving to milk powder production was the best option overall," Mr Taylor said.
Mr Taylor said every assistance would be given to all staff affected by the changes.
"Opportunities exist for redeployment within the company, and we are also working closely with local employers and
government agencies to identify other employment options in the region. We will continue to make available all the
support we can to help our people find suitable alternatives."
ENDS