Pago Pago, AMERICAN SAMOA — The Lolo Administration is hopeful that StarKist Inc., sub-lease of Samoa Tuna Processors (STP) Inc. facility will boost local employment, a statement echoed by some in the private sector, looking for more economic growth, through job creation, for the territory.

StarKist Inc. announced last Friday morning that it has finalized, that same day May 25, a “10-year lease agreement” with Tri Marine International for the STP facility, to support StarKist Samoa operations.

ASG owns the land in which STP is located and Tri Marine has a long-term lease with the government for the land. The lease agreement with StarKist is considered a sublease, and therefore requires the consent of Gov. Lolo Matalasi Moliga, according to ASG officials.

The Governor’s chief legal counsel, Steven Watson told Samoa News last Friday, that the “sublease was consented to by the Governor a couple of weeks ago.”

The StarKist announcement on the lease agreement comes at a time when Samoa News has learned from StarKist Samoa workers and their family members that the cannery has been recruiting new workers, with one group of new hirees going through orientation last week. Its unclear as to how many workers the cannery is hoping to recruit.

In March this year, StarKist Samoa official Taotasi Archie Soliai confirmed during the Western Pacific Regional Fishery Management Council meeting in Honolulu that StarKist is “currently using part” of the STP cold storage freezer “to try to accommodate some of that volume that’s coming in.” Taotasi is one of three American Samoa members on the Council.

Since then there has been talk in the business community of “possible negotiations” for longer a lease agreement between StarKist and Tri Marine for the use of STP, as cannery operations shut down in December 2016 laying off some 800 workers. Tri Marine continues to use the facility as a “logistic hub”.

In the announcement last Friday about the agreement, StarKist notes that while this is positive news for StarKist Samoa’s operations, “it continues to be difficult for American Samoa to compete with other manufacturing locations where labor costs and other expenses are substantially lower and subsidized.”

“StarKist will continue to work with government leaders and local business to address critical issues that are impacting StarKist’s business in American Samoa,” said company spokesperson Michelle Faist.

StarKist thanked Tri Marine saying, “We look forward to our continued work together.” In addition, StarKist also thanked the governor, his administration and the Fono for their support during this process.

StarKist didn’t elaborate on the type of operation it plans for STP.

LOLO ADMINISTRATION

Responding to Samoa News questions, the Governor’s executive assistant, Iulogologo Joseph Pereira said Lolo was informed of StarKist’s intention to lease STP and that the two companies have been negotiating the terms of the lease.

“The Governor would be pleased to hear that the negotiations are completed so StarKist can move forward with the implementation of its plans with the hope that more jobs will be created along with the generation of additional residual economic benefits,” Iulogologo said last Friday morning.

He noted that the governor and his Administration along with the assistance from Congresswoman Aumua Amata’s Office “have and will continue to work to improve the economics of Starkist's operation.”

Since the Togiola Administration, StarKist has been trying to secure government land to build a facility for additional freezer storage space, and the cannery has also worked closely with the Lolo Administration.

Responding to Samoa News inquiries, Commerce Department director Keniseli Lafaele said the sub-lease agreement “should adequately address the cold storage issue that has plagued StarKist for some time, help StarKist with their efforts to comply” with the US Environmental Protection Agency and the American Samoa Environmental Protection Agency regulations and provide additional processing capacity. 

“This should translate into at least sustaining the current level of employment at StarKist and add more jobs before end of the year,” Lafaele said over the weekend.

Lafaele also says that it’s “refreshing to learn StarKist is or may be diversifying and expanding their production lines to include the processing of chicken. If so, StarKist should consider the additional processing capacity they now have resulting from the aforementioned sublease.”

On May 2nd, StarKist announced in a national news release plans to launch its newest product innovation, Chicken Creations pouches, available nationwide this summer. The launch of chicken pouches marks the brand’s first foray outside of the seafood space.

The line of premium white chicken is available in four flavors in the signature ready-to-eat pouches, according to StarKist.

At the time, Samoa News inquiried with StarKist if the new product line is to be manufactured at the StarKist Samoa plant or elsewhere; and if its manufacture at the StarKist Samoa plant, will require the plant to hire more people.

Kelly Jones, with the New York based public relations firm, Coburn Communications, responded the next day on behalf of StarKist, by providing the same national news release, adding that that “any additional questions [Samoa News] may have, StarKist has no comment on, at this time.”

See tomorrow’s edition on reaction from Tri Marine and other information.