Lactalis Announces Closure of Australian Plant in Echuca
Source: The DairyNews
French dairy giant Lactalis has revealed plans to shutter its yogurt and desserts plant located in Echuca, Victoria, Australia, this year, impacting approximately 74 employees and contractors.
The decision to close the facility comes as part of Lactalis' strategic restructuring efforts, aiming to consolidate its operations into a single regional hub for its local yogurt and desserts business. The chosen site for this consolidation is Bendigo, also in Victoria.
Lactalis intends to invest A$85 million ($56.3 million) over the course of three years to bolster manufacturing and supply chain capabilities across regional Victoria. This investment aims to increase capacity while emphasizing advancements in environmental sustainability, technology, and automation.
Mal Carseldine, CEO of Lactalis' Australian business, explained that the decision to consolidate operations was informed by a thorough review of the yogurt and desserts division. Factors such as milk processing capability, operating costs, and site layouts were considered, leading to the selection of the Bendigo site as the most suitable option to support future growth aspirations in Victoria.
The closure of the Echuca plant underscores Lactalis' commitment to optimizing its operations and aligning resources with long-term strategic objectives, despite the implications for affected employees and contractors.
Lactalis intends to invest A$85 million ($56.3 million) over the course of three years to bolster manufacturing and supply chain capabilities across regional Victoria. This investment aims to increase capacity while emphasizing advancements in environmental sustainability, technology, and automation.
Mal Carseldine, CEO of Lactalis' Australian business, explained that the decision to consolidate operations was informed by a thorough review of the yogurt and desserts division. Factors such as milk processing capability, operating costs, and site layouts were considered, leading to the selection of the Bendigo site as the most suitable option to support future growth aspirations in Victoria.
The closure of the Echuca plant underscores Lactalis' commitment to optimizing its operations and aligning resources with long-term strategic objectives, despite the implications for affected employees and contractors.
