Bega Group has announced that it will be consolidating its Strathmerton cheese processing and packaging operations into its existing Ridge Street site at Bega.
The move is expected to result in $30 million worth of cost savings a year.
“This will be a phased closure, with the Strathmerton site continuing to operate until mid-2026, which will enable many of the impacted employees to have ongoing employment during this time,” said Bega group CEO Pete Findlay.
“Where possible, we will offer redeployment to employees and continue to support them through this period,” he said.
A $50 million capital investment, funded within the group’s normal capital expenditure program, will be required to ensure the Ridge Street site has the necessary infrastructure for the combined operation.
A non-cash impairment of $30 to $40 million is expected with regard to Strathmerton assets, with one-off cash costs of $30 to $40 million expected due to redundancies.
Following implementation, Bega expects an estimated 100 new jobs to be created in the Bega Valley.
