Alliance Group has announced its decision to close the historic Smithfield meat processing plant in Timaru by the end of December.
The 139-year-old facility, which has been operated by Alliance since 1989, currently employs around 600 people at peak season. The closure will primarily impact these workers, with the majority expected to be made redundant.
Alliance's CEO, Willie Wiese, acknowledged the difficulty of the decision.
"Our thoughts are with our people and their families affected by the closure. Smithfield has been a familiar presence in the region for almost 140 years, and we know this decision will impact the Timaru community and South Canterbury."
The decision to close the plant follows a two-week consultation period with staff and unions. Alliance cited declining sheep numbers due to land-use changes as a key factor in the closure. The company is grappling with surplus processing capacity across its network and aims to consolidate operations at its remaining South Island facilities, which are sufficient to meet processing demands.
Wiese emphasised that despite efforts to find alternatives, the plant's closure was inevitable.
“We cannot maintain excess processing capacity when livestock numbers don't support it,” he said.
He also expressed gratitude to local authorities, Venture Timaru, and support agencies for their assistance during the transition.
Employees affected by the closure will be offered redeployment opportunities at other Alliance plants where possible. For those made redundant, severance packages will be provided in line with their employment agreements.
The closure of Smithfield marks a significant moment for the Timaru community, but Alliance remains committed to maintaining its operations at six other locations across New Zealand, including plants in Lorneville, Mataura, Pukeuri, Nelson, Levin, and Dannevirke.
