Petfood company cans its plans for $52m factory | Manawatu-Wanganui News | Local News in Manawatu-Wanganui

Wanganui's Mars Petcare is selling land originally purchased for a rural development, and instead concentrating on improving production at Castlecliff, manager Colin Fergus says.

Mars bought a 152ha block of land at Marangai, just south of Wanganui, in 2003. Its intention was to eventually use the site to build a factory worth more than $52 million.

In 2006 it received resource consent to use the land, as well as the agreement of neighbours, after open meetings with the local council.

However, the company's strategy has evolved and it is now investing $30 million in its large Castlecliff site, in three stages.

The Marangai land is now unneeded, and is for sale by tender.

Investment in the Castlecliff site began in October 2010.

Stage one was a $13.4 million expansion of the building. Exterior work finished on schedule in April, Mr Fergus said, but work on the interior was continuing.

Production in a new mode with new machinery began in June last year, and was almost 25 per cent more efficient.

The company was then able to shed most of its casual staff. It now employed 190 people full time and a few casuals.

It produces almost 22,000 tonnes of petfood a year. As that amount increases, stage two of the new investment will begin. It will consist of a change in layout and new and faster machinery.

"We're not looking to lay off any more people. It's more about high-speed filling technology," Mr Fergus said.

Staff were excited about the site development, and reasonably confident about the market.

"We're pretty happy with where we're seeing the market go at the moment, and that's why we're continuing the expansion."

Mars Petcare in Castlecliff has been the home of the company's Whiskas and Pedigree brands since 1993.