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RNZ News
22-05-2025
- Business
- RNZ News
Fonterra confirm closure of Hamilton canning, packaging operations
The site has been hit with previous redundancy rounds in 2016 and 2014. Photo: RNZ / Cole Eastham-Farrelly The complete closure of Fonterra's Canpac canning and packaging operations in Hamilton was confirmed with staff this afternoon. In April, the dairy giant announced its plan to shut down the facility on 31 July. "That was what we had talked about at the previous meeting and, while that is clearly disappointing, we are working very positively with Fonterra at the moment to ensure that, for our affected members, if they want a job, they get a job within the dairy industry," said Dairy Workers Union national secretary Chris Flatt. When making the announcement last month, Fonterra chief operating officer Anna Palairet said low product volumes and increasing complexities in production had created challenging economic conditions for the facility. There had been various rounds of redundancies at the site, as demand for its products decreased, including in 2016 and 2014 . "There have been many attempts to keep the site going, but ultimately, there is a reduction of demand out there and, unfortunately, Canpac is at the front line," Flatt said. Fonterra agreed to give Canpac workers first preference for roles at other factories, if they wished to remain with the company. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
22-05-2025
- Business
- RNZ News
Fonterra due to confirm Hamilton Canpac site closure
Photo: Photo / AFP The closure of Fonterra's Canpac operations in Hamilton is expected to be confirmed. In April the dairy giant announced its plan to shutdown the entire canning and packaging facility in July. At the time Fonterra chief operating officer, Anna Palairet said low product volumes and increasing complexities in production had created challenging economic conditions for the facility. The company would work through a consultation process including exploring potential redeployment opportunities before operations were planned to come to an end, she said. RNZ understands the 120 staff who work at the site have been called to a meeting with the company on Thursday to confirm the closure plan.
Scoop
07-05-2025
- Business
- Scoop
Fonterra Announces Next Steps In Move Out Of Coal
As Fonterra officially opened the first electrode boiler at its Edendale site today, it announced further plans to progress decarbonisation at its Southern most site. The Co-operative will invest a further $70 million in two new electrode boilers as it moves away from using coal while securing renewable energy solutions to future-proof its sites. Minister for Climate Change and Energy, Simon Watts, who officially opened the existing plant alongside Fonterra Chief Operating Officer Anna Palairet, congratulated Fonterra on these next steps. 'The private sector has a leading role to play in increasing clean energy and meeting New Zealand's emissions targets. I am thrilled to see Fonterra building their renewable energy capacity and getting one step closer to meeting their decarbonisation goals.' The two new electrode boilers will replace two existing coal-fired boilers, providing renewable energy to support milk processing and future growth at the site including additional power and steam heat capacity for the new UHT plant currently being built. Fonterra's Anna Palairet says the investment is a key step in strengthening operations at Edendale. "Investing in renewable energy solutions, such as electrode boilers, will help ensure we can continue to process milk efficiently both now and in the future. Securing a reliable energy supply is critical to the resilience of our operations, and this investment will help future-proof Edendale for years to come." The investment also supports Fonterra's broader decarbonisation and emissions reduction targets*. Once the two new electrode boilers are complete, it is expected emissions at the site will be reduced by approximately 72,800 tonnes of CO2e annually, the equivalent of removing over 30,000 cars from New Zealand roads. This is forecast to result in an approximate 4%reduction** towards Fonterra's overall 2030 Scope 1 and 2 GHG emissions reduction target. General Manager Operations – Lower South Island, Andrew Johns says it's an exciting time for the site, with major investments shaping Edendale's future. 'With the new UHT plant coming online in 2026, the recently installed electrode boiler and now two more electrode boilers on the way, there's a real sense of progress here at Edendale. 'The investment is also great news for the local economy. Where possible we will be engaging with local contractors, and we expect over 400 people from Southland and wider New Zealand to be part of the team on site delivering this investment.' The investment is co-funded as part of a previously announced Energy Efficiency and Conservation Authority (EECA) partnership. EECA Chief Executive, Dr Marcos Pelenur, believes that 'the project is a positive step toward enhancing productivity, building resilient infrastructure, and ensuring long-term operational sustainability. This project supports greater energy security while laying the foundation for future growth and adaptability.' Construction is set to commence shortly, with the new boilers expected to be operational by August 2027. *The Co-operative's target is 50.4% absolute reduction of Scope 1 & 2 GHG emissions by 2030 from a 2018 baseline. ** From a 2018 baseline. Further details on the Co-op's progress to reduce manufacturing emissions: Coal free in manufacturing operations in the North Island (November 2024): With the turning off of the Co-op's Waitoa site's last coal boiler, the Co-op announced it was no longer using coal in the North Island. Work continues to transition the five sites in the South Island that still use coal. Edendale electrode boiler (October 2024): The Co-op's first electrode boiler generates steam from electricity and cuts the site's annual overall emissions by around 37,500 tonnes – the equivalent of removing around 15,600 cars from New Zealand roads. Hautapu boiler conversion (August 2024): Conversion from coal to wood pellets, with an expected annual emissions reduction of around 12,000 tonnes – the equivalent of removing around 6,500 cars from New Zealand roads. Clandeboye heat recovery project (February 2024):The new heat recovery system in the Lactose plant aims to decrease annual carbon emissions by around 3,000 tonnes – the equivalent of removing around 1,250 cars from New Zealand roads. Waitoa wood biomass boiler (October 2024): The new boiler at Waitoa has halved coal usage at the site, cutting emissions by around 46,000 tonnes annually – the equivalent of removing around 20,000 cars from New Zealand roads. Whareroa heat pumps (September 2023): Installation of New Zealand's largest heat pumps as part of a refrigeration upgrade, decreasing annual carbon emissions by around 9,100 tonnes – the equivalent of removing around 3,800 cars from New Zealand roads. Stirling biomass boiler (August 2023): Stirling's wood biomass boiler has reduced annual carbon emissions by around 18,500 tonnes – the equivalent of removing around 7,700 cars from New Zealand roads – and is the Co-op's first site running on 100% renewable thermal energy. Te Awamutu boiler conversion (August 2020): Converted the coal boiler to use wood pellets, removing coal use and emissions by around 84,000 tonnes – the equivalent of removing around 35,000 cars from New Zealand roads. Brightwater biomass co-firing (September 2018): Moved to co-firing wood biomass, reducing overall annual site carbon emissions by around 2,400 tonnes – the equivalent of removing around 530 cars from New Zealand roads.
Yahoo
29-04-2025
- Business
- Yahoo
Fonterra to shut down Hamilton milk powder packaging facility
Fonterra will shut a milk powder canning and packaging facility in New Zealand's North Island as the dairy co-operative readies for a planned divestment of its consumer business. The Canpac site in Hamilton, which blends and packages milk powders, will cease operations on 31 July. It handles up to 4,000 metric tonnes of product annually, representing less than 1% of the co-operative's total volume, Fonterra said in a statement. Fonterra COO Anna Palairet said that 'low product volumes and increasing complexities in production has created challenging economic conditions for the facility'. She added: 'Our strategy is about creating end-to-end value and growing total returns for our farmer shareholders. We believe the best way to achieve this is to focus on our strengths and scale in ingredients and foodservice, and we are prioritising our investment on the parts of our operations that are better suited to this.' The facility employs around 120 people. The dairy giant said it will 'work through a consultation process', including potential redeployment opportunities for affected staff before operations conclude at the Canpac plant. The latest move is part of Fonterra's shift to focus on its 'higher value' ingredients business, including advanced proteins and medical nutrition, as it prepares to spin-off the global consumer and associated businesses. Fonterra gave a new corporate identity to its consumer-facing business in February. Subsequently, in March, the co-operative started roadshow meetings with 'potential' investors as part of the divestment process for its global consumer and associated businesses. Fonterra has already trimmed parts of its global consumer operations in recent years. In April last year, the co-op said it had agreed to sell its minority stake in Lithuanian dairy business Rokiškio Sūris amid a 'strategic long-term review of investments'. In December 2022, Fonterra exited its Brazilian dairy joint venture with Nestlé, Dairy Partners Americas (DPA), where it held a 51% stake. That same year, the company sold its Chile unit Soprole and scrapped India dairy venture, Fonterra Future Dairy. "Fonterra to shut down Hamilton milk powder packaging facility" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
