Ballance announces proposal to cease manufacturing at Mount Maunganui; remains committed to presence at its site
Ballance Agri-Nutrients, the New Zealand farmer and grower co-operative, has entered into consultation with some of its people on a proposal to cease manufacturing of sulphuric acid and single super phosphate at its Mount Maunganui site.
If adopted, this would have an impact on some specific roles associated with acid and phosphate manufacture. Under this proposal, 68 roles would be disestablished and 6 new roles created, resulting in a net reduction of 62 roles.
The intention is for the co-operative to remain onsite utilising the proximity to the port for nutrient storage and distribution, and for its national support office.
Under the proposal the co-operative would continue to manufacture phosphate at its Awarua facility in Invercargill and urea at its Kapuni facility in Taranaki.
Ballance CEO Kelvin Wickham says this proposal is part of a wider process the organisation has been going through over the past year to get ahead of changes in the sector and identify future opportunities to support New Zealand farmers and growers.
“In the coming years, we expect to see an increased range of products and services that more efficiently and effectively deliver essential nutrients for farmers and growers, which will result in reduced overall demand for single super phosphate from historical peak volumes,” he says.
“The number of existing facilities currently making this product in New Zealand means there is an over capacity of supply.”
"Our current facilities at Mount Maunganui also require substantial investment to keep them operating reliably and will face increasing regulatory constraints to be able to operate heavy manufacturing into the future,” he says.
Kelvin adds that the consultation with Ballance people is the immediate priority and is anticipated to take four to six weeks.
“At the end of the consultation period, we’ll take time to consider all feedback before we make a final decision and let everyone know where things have landed and what our next steps are,” he says.
Kelvin says the proposed change will enable more agility in nutrient sourcing along with new ways to provide value to its shareholders, exploring more blended fertilisers and other products being utilised from its Mount Maunganui site.
“Manufacturing remains an important part of how we supply New Zealand’s farmers and growers with reliable, secure and affordable access to nutrients.
“Keeping a presence in Mount Maunganui as a strategic location for nutrient supply through the Port of Tauranga and our home base for our national support office is also a priority,” he says.