Whanganui business leaders react to Mars Petcare closure proposal

Mars Petcare has announced plans to move its Whanganui operation to Thailand. Photo / File

Whanganui and Partners believes the district's economy is strong enough to ride out the short-term impacts of a Mars Petcare closure.

Mars Petcare is proposing to close its Whanganui factory at the end of 2020, which would result in the loss of 152 jobs.

Whanganui and Partners chief executive Mark Ward said the decision is unfortunate for the company's local employees.

"We have a strong relationship with the local team and it's disappointing to see a decision made in a distant boardroom impact Whanganui's people," Ward said.

"Our economy is strong enough to absorb the job losses, which will allow the former Mars associates to continue with rewarding careers right here in Whanganui."

After operating in Whanganui for 26 years, Mars Petcare has announced it plans to shift the Whanganui operation to Thailand.

Ward said that although he would have preferred Mars to stay in Whanganui, there is a silver lining to its departure.

"By moving production to Thailand, they would be opening up their current premises for new use.

"It's a highly desirable location with a lot of potential for niche industries. The factory could be converted to suit a number of uses.

"This type of relocation is the reality of doing business in an increasingly globalised marketplace.

"Dunedin was in a similar situation a few years ago with Cadbury moving offshore and the city ended up seeing several positive developments coming from that. I hope to see similar outcomes in Whanganui."

Mark Ward believes job losses will be absorbed by Whanganui's strong economy. Photo / Lewis Gardner

Whanganui and Partners has offered to help facilitate relationships for affected staff with training providers and other local employers, and will be contacting businesses that would be appropriate to for the Mars Petcare site.

"I hope the opportunity is realised by a local or New Zealand-owned business that may be in a better position than a multinational to recognise the strategic and material advantages of being located in Whanganui."

Business Central chief executive John Milford said the proposal to shut down the site was an unavoidable blow.

"I know this decision has been taken reluctantly after some tough challenges in recent years and the need for them to find the scale they need closer to their growing markets in the Asia Pacific region.

"The main thing now is the company has said it will take care of its staff, ensuring they get their full redundancy entitlements and compensation, and will offer retraining, outplacement assistance and counselling."

Milford said it was helpful Mars had signalled its decision more than a year out, which would give staff time to adjust.

"This is a great example of how companies should operate when forced to make such decisions, and Business Central will make sure they and their staff have the necessary support to make the transition as painless as possible."