Australian dairy group National Foods has announced plans to close its Booval production site and transfer volume to its Crestmead facility, putting 100 jobs at risk.
In a statement released yesterday (28 April), the company said that it reached the decision following an “extensive review” of its manufacturing sites.
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“We have a great business at Booval and great people however when we take into account the duplication in our network and potential for future growth it makes sense to consolidate our volume into the Crestmead site,” supply chain director Arthur Murphy said.
The company will invest A$55m (US$51.1m) to expand its production capacity at Crestmead.
The firm employs 100 people at its facility in Booval and said that the employees would be given the chance to apply for positions at Crestmead.
The group added that the decision would not impact its local milk suppliers.
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By GlobalData“There will be no impact on local farmers as National Foods will continue to require the milk it buys locally,” Murchey said.
It is anticipated that the expansion of the Crestmead site will be completed in early 2011 with the distribution operations to be fully integrated in early 2012.
No firm date has been set for production to cease productopn at the Booval site.
