Nestlé has announced that it will cut 106 roles in Victoria, Australia by closing its Tongala factory.
The closure of this tinned milk plant will occur over a period of up to 18 months.
Commenting on the closure, general manager, Andrew McIver said: “People just don’t buy tinned milk like they used to, and cheaper imports have eroded our business further.
“At the same time, the equipment in this factory is old, and the investment we need to make sure it can operate reliably in the future means that the factory is no longer viable.”
Tongala’s closure occurs regardless of Nestlé’s investment attempts to improve the viability of the factory, including the addition of Maggi culinary products and Milo Ready to Drink.
While Nestlé reported that these additional products supported the factory, McIver said, “as milk is the bulk of what the factory makes, the newer ranges aren’t enough to maintain manufacturing at the site.”
Final closure is anticipated between late 2020 and mid 2021. Until then, production at the factory will progressively move to Nestlé factories overseas along with the equipment.
The site will be vacated and sold.
© FoodBev Media Ltd 2020
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