Proposed Closure of Tauranga Fish Processing Plant

5 August 2020


NZX Continuous Disclosure

Sanford Announces Proposed Closure of Tauranga Fish Processing Plant – 65 Potential Job Losses

New Zealand seafood company Sanford Limited has announced it is proposing to close its Tauranga
fish processing plant which could result in 65 job losses. The company is working with affected staff
to try to minimise the number who are impacted. It currently employs 77 people at the Bay of
Plenty site. Sanford says the proposed decision was based on a number of factors but two were key,
firstly the impact of COVID-19 has meant Sanford is processing less fish caught by other companies,
which has seen processing volumes for its North Island sites drop significantly, and secondly the
buildings at the plant do not meet new seismic strength requirements. Chief Operating Officer
Clement Chia says even if processing volumes eventually return to pre-COVID levels, the seismic
issues with the buildings and surrounding area mean it is not viable to continue at the Tauranga site.

“We are very sorry to have to take this path. Until very recently we had been planning a strong
future for our Tauranga team. We had installed a second processing line at the end of last year, but
in 2020 our fish processing arrangements were not only hit by the impact of COVID-19 but we
received the results of engineering reports showing that the site was not viable in the long term. We
would have needed to rebuild or move out within three years. The pandemic has unfortunately
moved up that timeline.”

Sanford Chief Executive Volker Kuntzsch says the intention is for some operations in Tauranga to
continue. “We would continue to unload seafood at the Tauranga site under the proposed
arrangements and we plan to retain a number of staff in that area. We are entering a period of
consultation with our team and we will not know the final configurations until that process is
complete. Tauranga has been an important base of operations for Sanford and we have enjoyed
being part of the community there. It is very unfortunate that circumstances have pushed us down
this path.”

Sanford has operations at eleven sites around New Zealand and has completed seismic surveys for
all of them, following the Christchurch and Kaikoura earthquakes. Most of its buildings will require
some remedial work, but the company has no intention of closing any of its other New Zealand
processing bases. Mr Kuntzsch says its Auckland processing site will require some short-term work,
but it has already been brought up to the necessary earthquake standards. Sanford’s long-term plan
is to eventually replace its factory there with a brand-new facility to add further capability to widen
the range of its seafood offerings.



For more information please contact:
Katherine Turner
Chief Financial Officer, Sanford
kturner@sanford.co.nz
021 470 436