Talks were held yesterday to try to resolve issues with Invercargill's Prime Range Meats processing company, after the plant unexpectedly ceased processing last week.
The plant, on the northern outskirts of the city, processes beef, sheep and bobby calves. An estimated 130 workers were sent home indefinitely last Tuesday.
Chinese-owned Lianhua Trading Group became the majority shareholder in November, 2014, when Prime Range Meats managing director Tony Forde and shareholder Southland businessman Inky Tulloch and associated parties reduced their shareholdings.
At that time, Lianhua said it expected to spend millions on redeveloping the plant, and to boost jobs by up to 40%.
Otago Southland Meat Workers Union secretary Gary Davis said yesterday he had been told Mr Forde, Mr Tulloch and Lianhua representatives were meeting to try to find a way forward.
Plant general manager Paul Hamilton declined to answer questions on Wednesday, and Mr Tulloch did not return calls this week.
However, Mr Hamilton told employees and other media processing had ceased because of ‘‘delays with the set-up of support processes by the new owner''.
Mr Davis said his understanding was the plant's problems were ‘‘very hard to explain'', and involved Lianhua and its parent company, Shenzen Lianhua Enterprise Development Co Ltd.
He said he had known for about a year of ‘‘arguments'' between the two companies over who would pay the bills, resulting in financial pressures at the plant.
‘‘It's been a real mix up. But because the plant was still operating we didn't think things were going to be so serious.''
The decision to send workers home had been unexpected, he said.
Mr Davis hoped the financial issues at Prime Range would be resolved soon and the plant would reopen.
If it was unable to open under the present ownership, he was confident a new buyer would be found.
It was the second instance this month of a Chinese-owned company making shock decisions affecting meatworkers, Mr Davis said.
In December, Binxi Foods Oamaru, a New Zealand incorporated company with links to Binxi Cattle Industry Company Ltd, based in China, bought Oamaru meat processing plant Lean Meats, saying it intended to invest $6million to $8million upgrading the plant.
However, Mr Davis said the beef chain closed down unexpectedly about two weeks ago.
He understood 60-80 workers had been affected.
Some had transferred to the mutton chain but the majority were looking for other jobs, he said.
