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Delay in works at Tongala abattoir

2008-07-01

The previously announced extension at H W Greenham and Son’s Tongala abattoir has been put on hold due to an unexpected surge in activity at their Tasmanian plant.

Executive chairman, Peter Greenham, said the Tasmanian side of the business had recently signed an exclusive deal with the large Korean retail group, Lotte Mart.

"That's leading to a sharp increase in volume. Other marketing initiatives for Tasmanian beef are also producing results much quicker than expected.

"It's good news of course, but the Smithton plant is really feeling the pressure, especially the boning room. If we don't do an upgrade very quickly, we'll run the risk of losing major export opportunities and a lot of work will go down the drain.

"Clearly that can't be allowed to happen but it's going to take a large investment," Mr Greenham said.

"Unfortunately, the new chiller at Tongala will have to go on hold for the time being - we can't handle two major investments at the same time."

Mr Greenham said the rapid expansion in Tasmania had come as something of a surprise. "It's been a very pleasant surprise, but one that's caused a rethink of our development plans."

Mr Greenham said he was very confident a chiller would be built at Tongala but couldn't provide a timeframe at this point.

"Tongala is performing well. The US grinding meat market quite buoyant. It would have been nice to do the expansion this year and open up additional markets but the business is still doing very well."