McCain will close its Hastings vegetable processing plant in New Zealand early next year, amid reports that the company has been struggling with losses in the market.
The closure is set for the end of the year’s processing and packing season, which is expected to be on January 31, 2027.
In a letter to growers, the company said it had reviewed a range of options for the site but could not “identify a sustainable pathway under the current model”.
Jobs at the factory will certainly be affected, but the specific number remains unclear.
The company noted that production and all existing contracts will continue through the remainder of the season. It will work directly with affected employees to ensure they have clarity and support during the transition.
According to the NZ Herald, McCain’s New Zealand operation has been loss-making for three out of its last five financial years, with its loss approaching NZ$17 million in the most recent reporting period.
Ginny Andersen, spokesperson of the New Zealand Labour Party, said the closure is another blow for workers and further proof that the Government is failing on jobs and the economy.
“Sadly, this is not a one-off event at one company, this is part of a broader pattern of closures affecting thousands of jobs across the manufacturing sector under Christopher Luxon’s watch,” Andersen said.
Earlier this month, Heinz Wattie’s said it would shutter three factories in Auckland, Christchurch and Dunedin, affecting about 350 jobs. The company will also stop production of certain product ranges, which would also impact suppliers.
Other recent major closures were also recorded at Kinleith Mill, Winstone Pulp and Sealord.
