Australian food group Goodman Fielder is to revamp its manufacturing footprint in Sydney with closure of one site and the construction of another facility.
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The company said today (19 November) that it plans to close its oils production plant in Mascot in the south of the city.
The site produces products including dressings and mayonnaise but had become “sub-economic” to operate, managing director Peter Margin said. He blamed the loss of a “major bulk oils contract” for the decision to close the site.
The company plans to build a packaged food facility in western Sydney as part of A$30m (US$26.7m) revamp of its manufacturing base.
“The bulk oil production that is currently undertaken at the Mascot plant will be transferred to existing plants in Brisbane and Melbourne,” Margin said. “Retail grocery product production will be transferred from Mascot to the new western Sydney plant.”
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By GlobalDataThe closure of the Mascot site will cost Goodman Fielder some A$13m; today, the company also issued a trading update that warned commodity costs would hit earnings.
Goodman Fielder forecast that raw material costs would cost it 40% more than last year and reach A$180m.
