SAN
09/04/2015 13:02
GENERAL
PRICE SENSITIVE
REL: 1302 HRS Sanford Limited
GENERAL: SAN: Sanford Limited - Continuous Disclosure
SANFORD LIMITED
SUSTAINABLE SEAFOOD
9 April 2015
SANFORD LIMITED ANNOUNCEMENT
Sanford Limited proposes to close its Christchurch mussel processing facility
in response to a reduction in crop supply
Sanford Chief Executive Volker Kuntzsch advises that "consultations with
Sanford Christchurch employees will commence at 1.00 pm today to discuss the
potential closure of the Christchurch mussel processing facility."
Recent weather patterns have impacted on natural spat (offspring) supply for
successive seasons to a point that necessitates addressing mussel processing
in a more effective manner. Wild spat supply is the single biggest constraint
on the mussel industry with current spat shortages limiting future crop
supply. In the long term Sanford's recent investment with government,
industry and research organisations in the selective breeding of mussels
(http://www.spatnz.co.nz) will alleviate the industry's reliance on wild
caught spat. However, at this stage it is not anticipated that these
initiatives will have a consequential impact on crop supply such that
Sanford's South Island plants are able to be efficiently utilised for the
next two to three years.
Given the outlook of Greenshell mussel crop supply in the short to medium
term there is a need to improve the capacity utilization across processing
locations in the South Island.
Sanford operates a manual opening plant in Christchurch and an automated
facility in Havelock, in close proximity to the mussel farms in the
Marlborough Sounds. Combining the volumes in one plant would eliminate the
strong likelihood of intermittent processing interruptions, unpredictable
shift patterns and two sub optimal manufacturing environments. This would
also facilitate some level of protection against current pricing in
international mussel markets, limiting the impact on the contribution mussels
make to Sanford's performance.
"We are now consulting with our Christchurch employees, as well as with
Government agencies and Christchurch civic, community and business leaders,
over alternative employment prospects for our employees should the closure
become reality", Mr Kuntzsch said.
"Should the Christchurch plant close, we will attempt to redeploy as many
staff as possible within Sanford's other plants and fleet operations
throughout the Group. If this is the outcome, we would also like to assist
the process of identifying alternative employment options within Christchurch
by liaising with major employers in the Canterbury area who may have suitable
vacancies for our staff members."
The site in Christchurch became part of Sanford's operations with the
acquisition of Pacifica Seafoods in 2010. Sanford employs 232 people in this
facility.
Volker Kuntzsch
Chief Executive Officer
For further information please contact Trish Sherson on 021 570 803
End CA:00262915 For:SAN Type:GENERAL Time:2015-04-09 13:02:35
