Tannery closure confirmed
New Zealand meat exporter PPCS has confirmed the proposed closures of its Te Kauwhata venison processing facility and its Windward tannery and finished lambskin manufacturing facility (see www.leatherbiz.com November 9).
Commenting on the closure, chief executive Keith Cooper said that decision to close the lambskin facility was as a result of competition from lower cost countries, whilst the closure of the venison facility was due to declining deer numbers. “The closure of Te Kauwhata reflects a trend of significant decline in national deer numbers. The closure of Windward reflects the fact that processing lambskins into finished products is no longer economic in the face of intense competition from low cost countries and a worldwide drop in revenues.”
Production at the Windward tannery is expected to cease by the end of the month whilst the finishing factory will remain in operation until its remaining orders have been completed. The 25 employees at the lambskin facilities will be offered positions at the company’s Finegand processing facility in Balclutha.
On a more positive note, the company is hopeful of selling the Windward brand as a going concern and a sale is said to pending. “A sale of the Windward brand to a New Zealand company is pending. The potential buyer plans to continue supply of Windward brand products to existing customers. In the interim, PPCS will continue sales from its Windward factory,” said Mr Cooper. “The sale of the Windward brand as a going concern will ensure that existing customers can continue to purchase Windward-branded products from the new owners,” he added.
