Lactalis to Close South Brisbane Dairy Facility Amid Urban Redevelopment

French dairy company Lactalis is set to close its South Brisbane factory, a move that aligns with the suburb's shift away from industrial purposes. This decision follows the company's acquisition of Fonterra for $3.4 billion, making it Australia's largest dairy company. The factory, part of the Parmalat manufacturing network, will cease operations in July, and the site will be sold.

According to Lactalis Australia CEO Mal Carseldine, the facility's location and infrastructure no longer meet the needs of a modern manufacturing network. He acknowledged the impact on the workforce, with many employees having long-standing ties to the site and the Pauls business.

The 1.697ha site, managed by Gregory Woods of Savills, spans 17 lots and offers the potential for 189,000 square meters of gross floor area. The property is strategically positioned near Brisbane's cultural precinct, including the Queensland Museum and the future Olympic International Broadcast Centre.

Brisbane City Council has been actively encouraging redevelopment in the area, previously inviting proposals for a former recycling site nearby. In 2023, a temporary local planning instrument was introduced, allowing for buildings up to 90 storeys, which has led to multiple large-scale projects being proposed by developers.

Lactalis plans to maintain its presence at another site on Montague Road, while parts of the South Brisbane riverfront owned by the company have been on the market since 2024, including land at 108 Montague Road.