Seafood company Sealord has raised the possibility of closing its Nelson factory due to cheaper foreign competitors with 60 jobs on the chopping block.
The company spoke with employees about a proposal to stop producing its Kirimi products because they were not commercially viable.
"Planned production for these products has seen a continued downward trend over recent years and forecast sales volumes have significantly reduced," a Sealord spokesperson said.
Sales have fallen 38 percent from the 2015 financial year.
"The current situation is not sustainable for Sealord."
"We are consulting with the people potentially impacted, and if the proposal goes ahead it could mean up to 57 permanent Sealord waged and three salaried roles may be lost."
The company is looking to create 15 new roles at the wetfish factory.
Food and services union E tu said workers are gutted.
These are good jobs for good people, Chas Muir said.
"Some workers have been there for several years, and it's through no fault of their own that hoki processing is no longer viable for Sealord in New Zealand."