McCain to close Hastings plant

Another major blow for the food manufacturing industry.

McCain ANZ has confirmed it is closing its vegetable processing plant in Hastings at the end of the current season. It has owned the plant since 1996.

The door is expected to finally close by January 31 next year.

McCain has not revealed how many jobs will be lost, bus says it is working with all employees who will be affected by the closure.

The news follows a recent announcement from Heinz Watties, which is proposing to stop production of frozen vegetables and shut plants in Auckland, Christchurch and Dunedin.

Hastings Mayor Wendy Schollum says the McCain announcement is devastating for the local region.

"Our immediate thoughts are with the workers, their whānau, the growers and the contractors who will also be feeling this as well. This isn't just impacting those who work at that plant, this has a real knock-on effect in our economy and I really want to acknowledge everyone who will be really feeling this today"

Mayor Schollum says the closures are indicative of the increasing pressure on businesses' bottom lines.

"It certainly highlights a bigger challenge that we're facing on a national level and that's that the cost of producing, processing and getting goods to market is rising and energy is a huge part of that."

"If we want regions and districts like Hawke's Bay and Hastings to stay strong into the future, we need to be really seriously be thinking at a national level about economic and energy resilience and that means we've really got to be seriously talking about securing affordable, reliable energy over the long term."