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Mondelēz International is to invest AUD 75 million ($59 million) in its Cadbury Claremont plant in Australia, but cost-cutting measures mean 50 jobs will be lost.
The company aims to boost efficiency through investment in new technologies, equipment and automation, as well as increasing the skills and capabilities of its workforce.
Based in Tasmania, the Claremont site employs 450 people and the job cuts are put down to rising costs and increasing competition.
Mondelēz area vice president Amanda Banfield said: “Our team here has worked hard to help us become more efficient, cut costs and improve our competitiveness and as a result, we’ve reduced the cost of converting raw materials into a block of chocolate by 12%.
“But while progress has been made, increasing local and global competition, low domestic growth, rising costs, and Australia’s distance from overseas markets make it difficult to compete against the likes of European factories with lower costs.
“To remain competitive, we need to improve our conversion costs by 30%, plus continue to raise the bar as competition increases further.”
Regional manufacturing director of chocolate Jason Bonisoli said: “The team here has helped us deliver significant waste and cost reductions, safety improvements, and they are learning new skills and reporting increased levels of engagement.
“But we want to keep making great tasting, affordable products here in Tasmania, and the changes we have announced today will create scale and drive costs down to position us to compete for export volume and secure local jobs and the future of manufacturing in Tasmania.
“The changes will help sustain Cadbury’s position as market leader, innovating and making new products that meet consumers’ requirements.”
The Claremont manufacturing site was the first Cadbury operation set up outside of the UK in 1922.
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