The firm decided to close the factory because it wouldn’t be able to meet future demand.
Some workers at the facility, which manufactures cheddar and mozzarella cheese, will be relocated to other Bega sites but 50 people will be out of work.
“The decision to close the site was made following a review of our network which concluded that the Coburg site’s capacity and city location cannot viably support Bega’s expected future growth,” Bega said.
The Coburg factory was acquired by Bega in 2009 and has since manufactured cheese for its private label range and food service cheese business. The dairy giant will continue to create its cheddar and mozzarella cheeses, sourcing from the other dairy factories and toll manufacturing arrangements.