Australia’s National Foods plans to rationalise its cheese production, investing in expanding manufacturing at one plant and shuttering or selling five other sites in Tasmania, South Australia and Victoria.
The moves follow a six-month review of operations, which concluded that it was not “sustainable” for National Foods to operate multiple manufacturing sites.
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All speciality cheese manufacturing, other than King Island brands, will be consolidated into a single site in Burnie, Tasmania. National Foods will invest A$120m (US$118.9m) in upgrading manufacturing at this location. The facility will produce 25,000 tonnes of cheese per annum, the company said.
In South Australia, National Foods said it will sell its Murray Bridge and Jervois sites and the 103 employees located there will be transitioned to another manufacturer. Meanwhile, the Simpson and Campbellfield sites in Victoria will be closed over the next three years, with the loss of 133 jobs, while the Kings Meadows site in Tasmania will also be closed, with the loss of an additional 40 jobs.
The company said that it will continue to produce the Kings Island brand at its plant on Kings Island and it will invest A$12m in upgrading and modernising this facility. The Malanda, North Queensland, site will also remain operational, producing mozzarella from milk produced in the region, the group added.
“National Foods’ restructure of its cheese business is the key to unlocking further profit and growth potential from the speciality cheese category and our preferred investment in the Burnie site will bring a high level of automation to the plant and realise that potential,” National Foods MD Andrew Reeves revealed.
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By GlobalData“It is critical for our long-term viability that we continually review our operation and make sure we are running as efficiently as possible, minimise duplication and optimise use of our resources. As a result of this review National Foods will be able to deliver an improved and efficient manufacturing platform to support future growth and innovation,” he added.
