More than 100 new jobs will be created with the construction of a $9.8 million automated lamb cutting facility at Richmond Limiteds Oringi works, near Dannevirke in the Hawke's Bay.
It is the second major investment the company has announced in two months. In May, work started on a $6.5 million upgrade and expansion to improve the competitiveness of the boning facility at its Pacific beef plant in Hastings.
Chief executive John Loughlin said work at Oringi would begin immediately and the new facility would be commissioned in November.
It would allow Richmond to further process all its lamb and give the company the ability to prepare product for markets with the most attractive returns at any give time.
It will remove the need for the company to export frozen carcases at times of peak processing, he said.
Currently the Oringi plant had the capacity to further process only 38 per cent of its throughput.
While the Oringi cutting operation worked closely with the companys specialty FoodTech lamb processing plant, the combined capacity of the two plants had not been sufficient to take advantage of all the opportunities for high-value cut exports.
Even with FoodTech at full capacity, Mr Loughlin said there was an opportunity to improve the companys competitiveness.
The new cutting facility would incorporate high standards of hygiene and food safety, as it would be designed as a hygiene envelope. The building would include staff amenities in addition to those currently used.
- HAWKE'S BAY TODAY
$9.8m lamb-cutting facility to create 100 jobs
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