Richmond targets efficiency

The company says it plans a multi-million dollar upgrade to the boning room facilities at its Richmond Pacific plant in Hastings.

The new facility will be heavily automated and mechanised as the company looks to lower processing costs and improve margins.

CEO John Loughlin says the changes will significantly streamline the boning operations at Pacific, benefiting suppliers, shareholders and staff.

"The impact of the new facility will be improved yields, better efficiency and greater processing flexibility. In short it will improve our competitiveness in beef."

"We are now investing in a single, modern boning room that will have major technology benefits. The design will separate the bulk and primal cuts, as well as the packing and trimming operations."

The new facility will require fewer staff but the company says the reduction being achieved by a mixture of attrition and redeployment.

Mr Loughlin says it will incorporate the most up-to-date features of beef boning rooms in Europe and the United States and will be re-commissioned by mid-October.

The company says the redevelopment is one of a number of enhanced capital expenditure opportunities signaled in the announcement of the recent interim result.

Mr Loughlin has said previously that the company needs to concentrate on improving its margins.

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