Ballance Agri-Nutrients has announced a proposal to cease manufacturing operations at its Mount Maunganui plant, with plans to convert the site into a storage and distribution centre.
Ballance Agri-Nutrients said it is consulting with employees regarding the potential termination of sulphuric acid and single superphosphate manufacturing at its Hewletts Rd facility.
If the proposal proceeds, 68 roles associated with acid and phosphate manufacturing would be disestablished, while six new positions would be created, resulting in a net loss of 62 jobs.
The facility would then be repurposed as a key storage and distribution centre while also accommodating Ballance’s national support office. Meanwhile, the company said it will maintain phosphate fertiliser production in Invercargill and urea manufacturing in Taranaki.
The company said this change is part of a broader initiative it has been pursuing over the past year to proactively adapt to industry changes 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,” Ballance chief executive Kelvin Wickham said.
“The number of existing facilities currently making this product in New Zealand means there is an overcapacity of supply.”
Wickham also explained that the Mount Maunganui facilities would require a hefty investment to ensure reliable operations and would also face increasing regulatory challenges to sustain heavy manufacturing activities.
He said consultation with Ballance employees was the “immediate priority,” a process 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.”