Nelson apple factory closing after 57 years
Over 100 jobs will be lost to Nelson after the closure of the Cedenco apple processing plant in Stoke.
The factory was bought by Cedenco Foods NZ Ltd (Cedenco) in 2018 after T&G Global was forced to sell it.
Cedenco currently employs 29 permanent workers and up to 100 seasonal staff at the Nayland Rd factory, most of them Nelson locals, but at the end of the 2020 season the plant will be shut down and relocated to Hastings.
Apple processing, turning apples not fit for grocery or export markets into juice, diced apples, and other products, will continue ‘‘at full capacity’’ throughout the 2020 season.
The factory has been operating as an apple processing plant for 57 years, but has had a troubled few years.
It was formerly owned by Turners and Growers (T&G), which was forced to sell the factory despite restructuring in late 2017 which saw 26 people made redundant.
Cedenco CEO Joe Nelson said the decision to relocate was ‘‘a very difficult one to make’’. He acknowledged that it was a blow to Nelson City to lose the factory and any workers who chose to relocate with it.
‘‘However, the Nelson factory, which was built in 1962, has reached the end of its service life as an apple processing facility,’’ he said.
‘‘We have looked at all short- and long-term options that would enable us to continue processing in the existing facility, or to replace it within the district, but unfortunately, none of these options are available before the current lease expires.’’
He said the ‘‘greatest disappointment’’ in the decision was the effect the relocation would have on staff.
‘‘We have really enjoyed working alongside them, and we hope as many of them as possible will take up our offer of relocation to Hastings, even though if they do move there, it would be a loss for the Nelson community.’’
Cedenco was offering a ‘‘full package’’ to support any workers who chose to relocate, Nelson said, but he acknowledged that many of the permanent and seasonal workers had lived in the city for years and relocating was not possible for all of them.
He said Cedenco was ‘‘very aware’’ of the potential negative impact that the relocation of processing could have on local apple growers. The company was still ‘‘in discussions’’ with Nelson and Tasman stakeholders about the possibility of co-investing in a new multipurpose site.
Cedenco has a site in Hastings, also acquired in 2018. Nelson said it would construct a ‘‘state of the art’’ building there to expand their apple processing operations.