Alliance Group Lists Former Smithfield Freezing Works Site for Sale

Highlights:

• Alliance Group (NZX: ALZ) lists Smithfield freezing works site for sale after shutting down the 140-year-old Timaru plant due to declining sheep numbers.
• Processing operations ceased in phases, with venison day-shift processing continuing until the end of last year.
• Company shifts focus to operational efficiency, maintaining another plant near Oamaru while optimizing its processing network.

Historic Timaru Plant Up for Sale

Alliance Group Limited (NZX: ALZ), a leading red meat co-operative, has officially put its now-closed Smithfield freezing works site in Timaru on the market. At the time of writing, the company is moving forward with the sale after announcing the plant’s closure in September last year. The decision was driven by a decline in sheep numbers due to land-use changes, which resulted in excess processing capacity across its network.

Impact of the Closure

Following the closure announcement, certain operations, including sheep, calves, and night-shift venison processing, ceased immediately. However, the venison day-shift processing continued until the end of last year. The closure marks the end of a 140-year history for the Timaru-based meat processing facility.

Focus on Operational Efficiency

Alliance Group continues to operate another processing plant just north of Oamaru, approximately an hour away. The company is focusing on streamlining its operations to enhance efficiency and adapt to changing supply dynamics within the red meat industry. The sale of the Smithfield site is expected to attract interest from potential buyers looking to repurpose the land for industrial or commercial use.

Future Outlook

While the closure represents a shift in Alliance Group’s operational strategy, the company remains committed to ensuring long-term sustainability in the sector. The co-operative continues to navigate industry challenges while exploring opportunities for growth and innovation in the red meat market.

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