Fonterra spending $30m to beef up Taranaki plant
Giant co-op is upgrading its Whareroa site, having spent $23m improving a coolstore since 2011 to cut freight costs.
Fonterra will spend $30 million beefing up its dry distribution centre in Taranaki as it clamps down on freight costs.
The Auckland-based co-operative is upgrading its Whareroa site, having spent $23 million improving the facility's coolstore since 2011, it says in a statement.
The plan is to reduce costs by keeping product stored near processing plants, and within easy access to ports. Construction is expected to be completed by August next year.
"This investment at our Whareroa facility will improve our logistics network's storage capacity and address existing capacity restraints in the region," director of logistics Mark Leslie says.
"This means we are able to reduce the number of freight movements from where a product is manufactured through to delivery to the customer, which reduces our carbon footprint and ultimately saves on transport costs."
Fonterra is on a savings drive this year to strip out up to $65 million a year by eliminating 300 jobs through centralising services, cutting duplication and simplifying management structures.
Units in the Fonterra Shareholders' Fund fell 0.4 percent to $7.20 today.
(BusinessDesk)
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Fonterra spending $30m to beef up Taranaki plant
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