Tuesday, 02 October 2012 16:14

Fonterra to close Oz plant

Written by 

Fonterra is closing a plant in Victoria as part of a review of its Australian operations. Its manufacturing site at Cororooke will close next year.

Fonterra Ingredients Australia managing director, Simon Bromell says the co-op is also starting a three-year program of investment and upgrades at its manufacturing sites in Victoria.

"To maintain our leading market positions, compete effectively on the world stage and continue to deliver a strong milk price to our farmers, we must ensure our manufacturing sites are efficient and capable of handling the growth we anticipate in the future," he says.

"With that in mind, we have reconfirmed plans to invest $20 million in site upgrades at Cobden and Dennington over the next three years, but we have also had to make the extremely difficult decision to close one site, at Cororooke.

"The Cororooke plant is over 100 years old and needs major upgrades to meet changing environmental and production standards. While our first preference is always to upgrade and maintain our sites, the challenges we face and the barriers to modernising this particular plant mean the most responsible thing to do is close it.

"This has been a tough decision and not one we have reached lightly. We have explored all alternative options to keep the site open but they were not commercially viable. We employ 130 people at Cororooke and supporting these people is our top priority at the moment. We wanted to give our people as much notice as possible, and we are working closely with all employees and their families to support them as we work through a staged closure process over the next year."

More like this

Fonterra appoints new CFO

Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.

Featured

DWOTY Award 'an absolute honour'

Humbling, overwhelming, and an absolute honour. That’s how 2024 Fonterra Dairy Woman of the Year Katrina Roberts describes her win at the Dairy Women’s Network conference earlier this month.

New CEO for Dairy Goat Co-op

Hamilton-based Dairy Goat Co-operative (DGC) is revamping its leadership in the hope of recovering from its financial doldrums.

Great stewards of the land

James and Debbie Stewart of Dairylands in the Manawatū are no strangers to taking home the silverware.

National

Rural GP's inspiring legacy

The legacy of Dr Peter Snow continues to inspire as the recipients of the 2023 and 2024 Peter Snow Memorial…

Off the radar

A year on and the problems created by Cyclones Hale and Gabrielle has largely dropped off the radar of media…

Machinery & Products

GPS in control

In a move that will make harvesting operations easier, particularly in odd-shaped paddocks, Kuhn has announced that GPS section control…

» Latest Print Issues Online

The Hound

Wrong, again!

OPINION: This old mutt well remembers the wailing, whining and gnashing of teeth by former West Coast MP and Labour…

Reality check

OPINION: Your canine crusader gets a little fed up with the some in media, union hacks, opposition politicians and hard-core…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter