By merging, Pesquera San Jose and SPK will have 23 per cent of catch quotas for the south-central area. (Photo: Stock File/FIS)

Merger to result in dismissal of over 200 workers

CHILE
Thursday, October 14, 2010, 22:50 (GMT + 9)

Executives from both Pesquera San José and SouthPacific Korp (SPK) have confirmed that the merger between the two companies will result in the dismissal of over 200 employees, which is one-fifth of their current total workforce.

When it was announced that they would integrate the businesses, in July, the two companies explained that the main objective was to achieve a set of capabilities addressing the shortage of horse mackerel, the main marine resource which is fished in the south-central region of Chile.

In addition, they referred to the uncertainty with respect to decisions taken by the Regional Fisheries Organisation (RFO) of the South Pacific in relation to possible changes in horse mackerel quotas for the country.

They also mentioned the consequences of the earthquake and tsunami that occurred last February, which heavily damaged the fishing industry in the Bío Bío Region, as it reduced the capacities of fish processing plants.

Representatives of workers from San Jose and SPK say that a total of 280 people will be let go, out of a total of 880 workers. The unemployed will though, receive appropriate compensation and re-employment courses.

At this time, only one of the two fishmeal plants run by San Jose is not operational after the earthquake, while the two owned by the other firm are fully operational.

According to a report by the newspaper El Mercurio, the new company will have a 23 per cent share of catch quotas for the center-south area.

SPK is part of the Copec Group, one of the largest business groups in South America dedicated to the production of food for human, animal or industrial consumption, whose raw materials have been extracted from the ocean.

The firm concentrates its operations in the Bío Bío Region, where it owns two plants for canning and freezing as well as two further plants for the manufacture of fishmeal and fish oil. It also has a fleet of seven offshore fishing boats.

Pesquera San José is one of the largest fishing companies in Chile, with more than half of the total exports of frozen fish, and has a leading position in the Chilean market, with a 55 per cent market share.

Related articles:

- Corporate merger details clarified
- Fishing companies to merge

By Analia Murias
[email protected]
www.seafood.media

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