The Wallace group sold its tannery to new owners. The New Zealand-based holding, created from the merger between Wallace Corporation and Farm Brands, decided to sell part of its assets to a group of players of which 3 entities operating in the meat industry are part of. Greenlea Premier Meats, Wilson Hellaby and Glendenburg Holdings. The acquisition also include a section of Wallace specialized in the transformation of meat.
Wallace sells the tannery
The tannery is located in the city of Waitoa. According to what reported by local media, ownership will be shared, but Greenlea, located in Hamilton, and Wilson Hellaby, located in Auckland, will be the two entities running operations. The Wallace group tans about 600,000 calf hides and 450,000 lamb hides every year thanks to its two sites: Waitoa and Fielding. The majority of the leather is exported, mainly to Italy, while another portion goes to China.
The agreement, write local media sources, was sealed for a price above 10 million New Zealand Dollars and states that all 100 workers employed in the three locations involved will maintain their jobs: the tannery in Waitoa and the two transformation plants in Northland and Fielding. Greenlea’s managing director, Tony Egan, explained that the joint venture will allow them to create economies of scale such to make the three sites grow.
Precedent
New Zealand’s tanning industry confirmed its active status in the last period. Wallace group had opened, in July 2018, a collection point for ovine and bovine hides, in the Southland region. The company also opened a site to stock its di “casualty cows” and “slink lambs” in Mataura (about 50 employees). Moreover, New Zealand Light Leathers, a division of large meat operator Argent Group Europe ended up in Tasman Tanning’s sight back in January.
Image from wallace.co.nz
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