WELLINGTON - Talley's Fisheries has closed its Greymouth fish processing operation.
Talley's director Michael Talley told NZPA the company had shut down its Greymouth processing operation while it waits to enter negotiations with Grey District Council on land for a new factory.
There had been concerns in Greymouth about thefuture of the plant after it was reported staff had been cut from 15 to six in recent months.
"Our present factory needs rebuilding and the council wants our freehold land intended for the new factory for coal development," Mr Talley said.
"Presently the terms for an alternative site are not agreed as council have not given us an equal cost option.
"In the meantime, while all this has been going on, any repairs to our existing factory would have been wasted money. Our latest letter from the Council indicates they will reply to us sometime in July. The present factory has closed for lack of alternatives."
Grey District Mayor Tony Kokshoorn said Talley's had written to him and explained the existing plant did not meet processing standards. It was already in shut down mode by June 17.
The fish landing facility would remain, and fish offloaded at Greymouth will be taken to Westport for processing.
"I'm extremely disappointed," Mr Kokshoorn said.
He had thought a new, smaller factory was to be built instead. Mr Kokshoorn said he still hoped the parties could go back to the table and discuss building new premises in the medium term. Talley's had a long association with Greymouth, and a loyal workforce.