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Wattie’s frozen food shutdown reflects rising costs and shrinking manufacturing margins

The manufacturing environment in New Zealand has become “increasingly difficult” in recent years.

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Summarised by Centrist

Food manufacturer Heinz Wattie’s Limited is proposing to shut down several product lines and close three factories, citing mounting economic pressure on food manufacturing in New Zealand.

The plan would phase out frozen vegetables, Gregg’s coffee, and dips sold under the Mediterranean, Just Hummus and Good Taste Company brands. If confirmed after consultation, the move would affect about 350 workers across sites in Auckland, Christchurch and Dunedin, as well as frozen packing lines in Hastings.

According to the company,  the manufacturing environment in New Zealand has become “increasingly difficult” in recent years. A combination of global inflation, rising production costs and broader industry challenges has put sustained pressure on profitability. 

Managing director Andrew Donegan said the decision followed a review of options as the business looks to focus on its long-term strategy.

“The decision to start this process was not taken lightly. Numerous alternatives and options were explored before reaching this phase,” Donegan said. “It is a necessary step to position our company for the future.”

The closures would remove several long-standing product lines from domestic production and end manufacturing operations at three facilities.

Union officials say the decision will have significant ripple effects across regional economies. 

Consultation with workers and unions is now underway, with the final number of redundancies to be confirmed after redeployment options are considered.

Read more over at 1News

Image: leibolmai

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