The proposed withdrawal from Nelson of major seafood company Sanford is a blow for the city, says a fishing industry representative.
Dennis Wells, the president of the Port Nelson Inshore Fishermen's Association, said the impact would be felt throughout the Nelson fishing sector and related service industries.
Sanford announced last week that it had decided to sell its Nelson fish processing plant as a going concern because it had too much processing capacity nationally.
If it did not sell by the end of this month, it would close next month.
Sanford's Nelson-based fishing boat the Waihola would be relocated to Tauranga.
The almost 90 staff employed at the plant face the prospect of either applying for jobs at other Sanford sites, looking for other work, or hoping that a buyer of the plant will take them on.
Wells said he felt sad for the workers, many of whom he knew well. But Sanford's move would have an impact beyond just them and their families.
Suppliers and companies that serviced the plant and the Waihola would also be affected.
"It will have quite a flow-on effect. We're talking major dollars."
Wells said independent fishers such as himself who sold fish to Sanford would have to find other buyers.
Some fishers also leased quota off Sanford and were now discussing future arrangements with the company.
Wells said he hoped the plant could be sold. "I'd hate to see it disappear overnight."
Other major seafood companies based in Nelson were reluctant to comment on whether they were interested in buying the plant.
Sealord Group spokeswoman Merrill Coke said the company had not yet had a chance to "study the opportunity".
The plant includes a processing factory, office block and wharf. Sanford's large cool storage facility in Tahunanui is also up for sale.
But the closure could have positive effects for Marlborough. Some staff will relocate to Sanford's mussel processing factory in Havelock, between Nelson and Blenheim, which employs 150 people. The factory expanded and doubled its capacity this year.
Havelock Sanford manager Don Mitchell said recruitment "has been not as easy as it has been in the past" and they were looking for more staff.
Marine Farm Association executive officer Graeme Coates said labour was a major restriction to extending Marlborough's aquaculture industry.
Though the region accounted for 80 per cent of mussel and salmon production in New Zealand, it processed only about 40 per cent.
But Coates said the Nelson labour market would absorb most of the employees left redundant by the closure and Marlborough should not wait for extra labour.
- NZPA
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