Fonterra to close Australian plant

Fonterra will close a rundown manufacturing plant at Cororooke in Victoria because it is not worth repairing.

The plant, which employs 130 people, is more than 100 years old and needs major upgrades to meet environmental and production standards, Fonterra Ingredients managing director Simon Bromell says.

"The barriers to modernising this particular plant mean the most responsible thing to do is close it."

The Cororooke plant makes soft cheeses and cream products.

Mr Bromell says redundancies are likely, but Fonterra will try to relocate employees.

However, the company has also announced it will invest $20 million over the next three years in site upgrades at its nearby Cobden and Dennington plants.

Farmers will not be affected, Mr Bromell says.

"All milk will continue to be collected as normal and in the future will be delivered to Fonterra's nearby Cobden and Dennington sites for processing."

Part of Fonterra's investment plan at Cobden involves buying the neighouring former National Foods site for future expansion.

The Cororooke closure will happen in stages over the next year. 

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7740 -0.0003 -0.04%
AUD 0.9511 0.0005 0.05%
EUR 0.6324 -0.0002 -0.03%
GBP 0.4954 0.0001 0.02%
HKD 6.0039 0.0001 0.00%
JPY 92.5100 -0.0050 -0.01%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5518.5 5545.0 5539.3 -0.21%
NASDAQ 4752.6 4782.1 4748.4 0.36%
DAX 9901.3 9901.3 9811.1 -0.25%
DJI 17778.0 17874.0 17778.2 0.15%
FTSE 6466.0 6566.9 6466.0 1.23%
HKSE 23158.3 23189.6 22832.2 1.25%
NI225 17511.0 17621.4 17210.0 2.39%