The Silver Fern Farms meat co-operative is shedding more of its skin processing operations in the North Island.
It has signed an agreement to sell its cattle hide processing plant in Napier to Lowe Corporation, which operates tanning and leather plants in Hastings.
Lowe is proposing to keep running the Napier plant with the existing staff.
If the sale goes through later this month, Silver Fern will channel most of its North Island cattle hide business through Lowe, in a toll processing arrangement.
Last year the two companies reached a similar agreement for processing pelts from Silver Fern's three North Island sheep plants.
That led to the closure of Silver Fern's Shannon fellmongery, with the loss of more than 80 jobs.