Ballance Agri-Nutrients has proposed converting its Mount Maunganui manufacturing plant to a storage and distribution centre, with a net loss of 62 roles.
Chief executive Kelvin Wickham said the proposed change aimed to improve efficiency and adapt to sector changes, with consultation with staff ongoing.
The potential loss of 62 jobs is “a concern for Tauranga”, says the head of the region’s economic development organisation Priority One.
In a statement on Wednesday, the company said it was consulting with staff on ceasing the manufacturing of sulphuric acid and single super phosphate at its Hewletts Rd site.
This would impact some specific roles associated with acid and phosphate manufacture, and 68 roles would be disestablished, six new roles created, with a net reduction of 62 roles, the statement said.
Priority One chief executive Nigel Tutt said the potential loss of 62 specialist jobs was “a concern for Tauranga” but Ballance would “retain a strong presence in the city”.
“This will be a disappointing time for those affected, and should the proposal go ahead, we hope that they can find other opportunities in the region.”
The nationwide farmer and grower co-operative said it intended to use the facility, which had direct access to Port of Tauranga, for nutrient storage and distribution, and for its national support office.
Ballance chief executive Kelvin Wickham said consultation with Ballance people was the “immediate priority” and anticipated that would take four to six weeks.
He said the proposed change aimed to “improve efficiency and adapt to sector changes” and the co-operative would continue manufacturing phosphate in Invercargill and urea in Taranaki.
The proposal was part of “a wider process” the organisation had undertaken in the past year to get ahead of sector changes and identify future opportunities to support New Zealand farmers and growers.
“In 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.”
Wickham said the number of existing facilities making this product in New Zealand meant there was an “overcapacity of supply”.
Ballance Agri-Nutrients Ltd's chief executive, Kelvin Wickham, reveals proposed changes to its Mount Maunganui manufacturing plant. Photo / Supplied
The change would enable more “agility” in nutrient sourcing, new ways to provide value to shareholders, exploring more blended fertilisers and other products being utilised from the Mount Maunganui site.
He said the Mount Maunganui facilities needed substantial investment to keep them operating reliably and the company would face “increasing regulatory constraints” to continue heavy manufacturing.
“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 said.
Wickham said the company would take some time to consider feedback before making a final decision.
Unions response to Ballance’s proposal
A Maritime Union of NZ (MUNZ] spokesman said he understood that MUNZ had 21 members working at the Ballance Mount Maunganui site, 14 whom would be affected by the proposal.
“At this point, the proposal will be discussed with those members next week when MUNZ will work through the process and the goal is to maintain as many jobs as possible for members.”
Steve Westoby, a national industrial organiser for the Aviation and Marine Engineers Association (AMEA), said one of its members worked at the site and the company was following the correct processes.
Westoby said if this proposal went ahead, it would be sad to see another manufacturing processing company end its manufacturing operations in the North Island.
An E tū Union spokesman said the union would not be commenting on the proposal at this stage in the consultation process, but confirmed a couple of members worked at the Hewletts Rd site.
Port of Tauranga chief executive Leonard Sampson. Photo / Port of Tauranga
Business leaders reactions
Port of Tauranga chief executive Leonard Sampson said Ballance was an “important” customer for the port, and appreciated it was a “really difficult time” for Ballance and staff affected by the proposal.
“We are discussing with Ballance the implications of moving to a changed import model, however at this stage we are not anticipating a significant impact on the cargo volumes through Port of Tauranga.”
Bay of Plenty Regional Council chairman Doug Leeder said it was the regional council’s role to monitor and manage air quality.
“Ballance Agri-Nutrients holds a number of resource consents for their Hewletts Rd site, and, if this proposal were to proceed, we would work through any implications at that time.”
Chief executive of economic development agency Priority One Nigel Tutt. Photo / Alex Cairns
Tauranga Business Chamber chief executive Matt Cowley said he preferred to wait until he had more information before commenting.
Tauranga Mayor Mahe Drysdale was contacted for comment.
Sandra Conchie is a senior journalist at the Bay of Plenty Times and Rotorua Daily Post who has been a journalist for 24 years. She mainly covers police, court and other justice stories, as well as general news. She has been a Canon Media Awards regional/community reporter of the year.
