70 jobs lost as King Island closes abattoir

JBS Australia yesterday announced its King Island abattoir, which started its annual seasonal shutdown on August 6, would not reopen.

There were 70 employees working at the abattoir at the time, a figure that rose to about 100 during seasonal peaks.

Chief executive Andre Nogueira said that the company would continue to be a major buyer of cattle on King Island and planned to continue the King Island Beef brand, but process the meat at its Longford facility.

Mr Nogueira said that despite the capital and resources JBS had committed to the King Island business, it had never been profitable and would close immediately.

``We acknowledge that this decision will have an effect on the King Island community and our workforce,'' Mr Nogueira said.

``We will be actively working with government and the union to support and assist affected workers in transitioning, based on their skills, to available vacancies at Longford as a first step and to other JBS processing sites, if suitable.''

Acting Premier Bryan Green said that the government had done everything possible to help keep the operation going and the closure was undoubtedly a blow to the community.

Former premier David Bartlett in December 2009 announced that the state government had ``delivered on its promise to save every job at the King Island abattoir and ensure the long-term future'' of the King Island Beef brand.

The government provided JBS with a 15-year, $12 million loan that was expected to allow the company to maintain its 90 jobs and create a further 20 long-term jobs.

Mr Green said yesterday that the loan had been repaid in full.

JBS was also one of the companies set to receive export assistance funding - funding that the government on Friday said would have to be repaid by those who ceased trading.

Mr Green said that the government's immediate focus was on affected individuals and families.

`Mr Green said senior officers from the Department of Economic Development went to the island yesterday to talk to the community and the council.

Deputy opposition leader Jeremy Rockliff and Liberal Senator Richard Colbeck blamed the closure on Labor policy.