Chinese milk factory closes

A Greerton milk factory has closed down in what may be one of the final tremors of a dying financial empire.

About 50 people have lost their jobs as the New Zealand business deals of Chinese businesswoman May Wang unravel.

The gates are closed at this Greerton milk plant.

May Wang was a director of Natural Dairy, which was attempting to buy the Crafar family farms, and of New Zealand Dairy Processing, which owned the Greerton factory.

She resigned from NZDP earlier this year after Natural Dairy failed to obtain Overseas Investment Commission approval for the purchase.

Hong Kong’s International Commission Against Corruption charged May Wang with conspiring with Jack Chen to offer secret commissions – two properties and HK$73 million (NZ$11.8 million) – to him to organise for Natural Dairy to acquire UBNZ Asset Holdings, owned by Wang.

The Greerton factory opened in January to process UHT milk for the Chinese market.

May Wang was declared bankrupt in the Auckland High Court last year.
Following her bankruptcy she travelled to Hong Kong without authorisation.

If she returns to New Zealand, May Wang could face arrest on a charge that carries a three year maximum jail sentence and fine of up to $10,000.
A warrant has also been issued in Hong Kong for the arrest of co-accused Jack Chen, the Natural Dairy company founder. He failed to turn up to face his court charges.

Meanwhile the recently refurbished Greerton factory has been unable to perform.

“We haven’t been in production since July, but we did three days in August,” says former employee Sarah Laugesen, “since then we haven’t been in production at all”.

“We’ve been told since then that what really tipped us over was there was no market left to sell our product, which I suppose is actually true because May Wang and Jack Chen owned all the concept stores in China and Hong Kong. Of course with them out of the picture we have no-one to sell it to.”

There were 38 staff laid off on Friday after 19 were laid off in August. They were given four weeks notice and pay.

“On our final meeting on Friday there was some indication that there is a very slight possibility that it could re-open soon, but that we were assuming Fonterra or Goodman Fielder may be interested in taking over.”

Management told staff the plant has insufficient funds to operate and no prospect of new business.

“It’s a bit of a hit for our employment industry in Tauranga,” says Sarah.

“I know 50 is not that large a number, but that’s now 50 people having to search for jobs this close to Christmas.”

Job search agencies are meeting with staff today.

“There are a couple of people left mothballing the factory, just going through and decommissioning the plant and whatever else there is there,” says Sarah.