Silver Fern Farms has announced it plans to close its Fairton freezing works factory near Ashburton.
More than 370 staff were called to a paid-meeting on Wednesday afternoon where they were told the news.
In a statement, Silver Fern Farms says the decision comes after a decline in regional sheep numbers.
"There has been significant land-use change in Canterbury and Marlborough over the last decade and there are fewer sheep in these regions as they have made way for other uses such as dairy and wine," CEO Dean Hamilton says.
"Whilst it is disappointing to propose closure, we cannot ignore the changes that have occurred."
'We're finished' - Fairton factory worker
Workers have reacted to the news of the planned closure at the Fairton freezing works.
They described the feeling in the room as "a bit numb" when they were told the news.
One man told Newshub rumours were circulating for a while so workers knew a change was coming.
While Silver Fern Farms says there will be opportunities for workers to get jobs elsewhere, it is too far away for some.
"[It's] too far away, when people are established in a town it's too far away," a worker who wanted to remain anonymous said.
Many workers have said they wouldn't consider a move because the town is "a great town."
Some took the news in their stride, one man saying, "[I'll] probably go down to the pub and have a beer."
While another man said he'll use this planned closure as an opportunity to practice retirement.
Speculation around Fairton's future
Earlier in the week Silver Fern Farms denied it would turn the plant into a water-bottling facility.
The Fairton site is directly across the road from Lot 9, the controversial site behind Ashburton District Council's failed water deal, where it tried to sell the land to a bottled-water company.
Silver Fern Farms was granted consent in 2015 to extract billions of litres of water a year up until 2033.
Shanghai Mailing Aquarius has a 50 percent joint venture with Silver Ferns, which owns the freezing works. It also has interests in water and owns a subsidiary that bottles water in China.
Newshub.
