Forty full-time jobs will be created in the Clutha region following the opening of a new million-dollar casings facility at Silver Fern Farms' Finegand plant.
The new facility is under construction and the company aims to have it open by Christmas.
It will take part-processed green lamb runners, which are intestines with grass still in them, and turn them into processed sausage casings ready for export.
The job announcement was made at the opening of this year's Ready Steady Work programme in Balclutha yesterday, an initiative to help young people into jobs.
Clutha District Mayor Bryan Cadogan, who once worked in a casings plant, described the move as good news and told those at the launch that Silver Fern Farms was a cornerstone of the work programme.
He said the Mayor's Taskforce for Jobs Initiative for Clutha was aiming for zero unemployment for youth in the Clutha District and the 40 new roles would be a great help.
"We honestly believe you deserve a job and we're going to get you one."
Twenty-four of the 26 people who took part in last year's programme had found a job.
Finegand plant manager Phil Shuker said the new facility was an exciting development for the region.
"There are good jobs in the Clutha community and we need people with initiative to fill them."
Silver Fern Farm's chief executive Keith Cooper said the lamb runners were previously exported to China for further processing.
"The plant will be operational year-round so our customers can have a reliable and high quality source of clean, salted casings."
Green casings would be brought to Finegand from four Silver Fern Farms' plants throughout the country, making it one of the larger casing facilities in New Zealand, he said.
"It will create value from a product that will add to the profitability of our sheep meat business in the short to medium term."
Finegand used to have a casing facility, but it closed down in 2005 following a change in demand for green runners.
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