Saputo Dairy Australia (SDA) announced on Wednesday they will permanently close their Maffra facility early next year.
SDA said in a media statement this morning that after “careful consideration of all affected stakeholders”, the company was “undertaking further consolidation initiatives intended to enhance its operational efficiency and strengthen its competitiveness.”
“As part of the Optimize and Enhance Operations pillar of Saputo Inc.’s Global Strategic Plan, these initiatives include the intention to permanently close its Maffra, Victoria, facility,” the statement said.
“Additionally, while the sites will remain operational, the Company will streamline activities at two further facilities with the intention to shut down its bulk powders production area located in Leongatha, Victoria, and close its cheese packaging area at Mil-Lel, South Australia.”
“Many of the impacted production and packaging functions at these three facilities will be absorbed or integrated into the Company’s other facilities, increasing capacity utilisation and reducing costs.
“Approximately 75 employees will be impacted. Site management will work closely with affected employees at the three impacted sites to discuss redeployment and retraining opportunities. Where alternative roles are not available, these employees will be provided with severance and outplacement support.”
President and Chief Operating Officer (International and Europe) of Saputo Inc Leanne Cutts said the announcement was aimed at improving efficiency and the company’s competitiveness.
“While a very difficult decision to make, today’s announcement continues our journey towards long-term success for our business in Australia by increasing our efficiency and productivity, and making our business more competitive,” Ms Cutts said.
“These strategic steps taken to further streamline our network aim to leverage SDA’s broader manufacturing network capabilities while creating synergies to maximise the return on every litre of milk.”
Not long after the announcement, Member for Gippsland Darren Chester shared his thoughts on Facebook.
“Devastating news for dozens of Maffra and district families in the lead up to Christmas with Saputo releasing this statement to the share market,” he said.
“The Maffra community is extremely resilient and I know it will overcome these challenges but that doesn’t soften the news for staff and families directly impacted by this decision.
“I will be working with the community, Wellington Shire Council and other levels of government to secure more investment in infrastructure and services to boost the local economy.
“In many ways, this will be the end of an era: Maffra has had more than 100 years with a dairy factory… adding value to the milk produced throughout the region and creating local jobs.”
SDA said they will work closely with its customers to ensure these changes have minimal impact and intends for its consumers to continue enjoying its range of dairy products. SDA also expects no changes to its farmer relationships, with suppliers’ milk continuing to be collected and processed across SDA’s network. These changes will take effect in the first three months of 2023.
More to come.
