Bacon factory closes

Press, 1 February 1988, Page 2

Bacon factory closes

PA Wellington The bacon and smallgoods manufacturers and distributors, Peach and Vienna Foods, is closing its Auckland factory and distribution depots and axed 168 jobs. The managing director of the company, Mr John Green, said the decision was indicative of considerable difficulties being experienced by the meat industry, and in particular the bacon and smallgoods business.

Excess production capacity within New Zealand, diminishing market de-

mand, lack of profitability, growing competition from imported products and contraction of the New Zealand economy, had resulted in poor trading results for some time, he said.

The group’s pig farming operations and abattoir at Franklin will continue to run. Hellaby Meats (South Island) Ltd, will continue to manufacture and distribute Peach and Vienna brand products in the South Island, Mr Green said.

In Dunedin, about 40 workers will be made redundant when the sale of the Dunedin-based soap

factory of McLeod Brothers, Ltd, takes effect on March 31. The firm has been sold by Carter Holt Harvey, Ltd, to Stevens KMS Corporation, Ltd, of Auckland. Stevens will retain the soap-chip manufacturing plant on the present Cumberland Street site, but will transfer the soapfinishing process to its Auckland plant.

The manager of McLeod Brothers, Mr Kevin Montgomery, said that. two production staff and one sales person had been offered a transfer to Auckland as part of the new operation.