Fonterra Co-operative Group (NZE:FCG) will close its Canpac canning and packaging facility in Hamilton at the end of July due to weak product volumes and "increasing complexities" in production, according to a Tuesday statement.

The site employs around 120 people and produces less than 1% of the company's total product volume.

Fonterra said the closure is in line with its strategy to focus on higher-value ingredients such as advanced proteins and medical nutrition. A consultation with affected staff is underway.