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Aryzta to build €40m bakery plant in Australia
FoodBev Media

FoodBev Media

21 December 2023

Aryzta to build €40m bakery plant in Australia

Swiss food business Aryzta has started the construction of a new bakery facility in Perth, Western Australia. The total investment is estimated to be approximately €40 million for the project. The new facility, which will create 80 jobs and over 500 indirect roles in the Perth area, will serve quick service restaurants, food service and retail customers. According to Aryzta, this development will significantly enhance the company's ESG credentials in Australia, as it aims to remove an estimated 1.7 million food miles associated with the transportation of bakery items to customers in Western Australia from its existing facilities in New South Wales and Victoria. The investment is expected to reduce the business' local carbon footprint by more than 700 tons of CO2 annually, while the availability of local raw materials for bakery such as flour, dairy and sugar will also minimise food miles and further enhance sustainability. Moreover, the new facility will be largely powered by a local renewable microgrid that sources its energy from a solar and battery storage system. Aryzta's chair and interim CEO, Urs Jordi, said: “Australia is an attractive growth market for bakery products and this expansion in Perth will allow Aryzta to produce fresh and frozen products as opposed to shipping frozen only over long distances from our plants in eastern Australia. The project has very strong sustainability credentials and will generate additional direct and indirect employment. It will reduce food miles and use renewable energy." "The €40m investment capex will be funded within our 3.5-4% revenue guidance in our midterm plan to ensure we continue to generate cash and reduce total debt below 3x by 2025. Business performance remains in line with expectations and on track to reiterate our confidence in delivery of our growth and financial targets.” The facility is scheduled to be completed in two years once construction starts.

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