Saputo Dairy Australia (SDA) is set to close a factory in Victoria and streamline functions at two other plants in two states.
The dairy processor produces and distributes a range of products including milk, cheese, cream and cultured products, extended shelf-life milk and dairy ingredients.
The plant at Maffra in Victoria will be shut down permanently. Meanwhile, processes at the company’s bulk powder production site at Leongatha, Victoria and a cheese packaging site at Milk-Lel, South Australia will be rationalised.
Production and packaging functions at all three sites will be absorbed into the company’s other facilities, increasing capacity utilisation and reducing costs, said Leanne Cutts, president and COO of Saputo.
She described the decision as “difficult” to make but necessary in order to strengthen the business’s long-term success in Australia.
“These strategic steps are taken to further streamline our network and aim to leverage SDA’s broader manufacturing network capabilities while creating synergies to maximise the return on every litre of milk.”
About 75 employees are said to be impacted by this decision as the site management works to discuss redeployment and retraining opportunities.
