Nestlé has announced the closure of its Tongala factory in far northern Victoria.
“People just don't buy tinned milk like they used to,” GM Andrew McIver said. Cheap imports had also eroded the business.
Over the next 12 to 18 months, all production at the factory will progressively move, mostly to Nestlé factories overseas, with final closure anticipated between late 2020 and mid 2021.
Tongala’s population is roughly 2000, and the plant employed 106 people.
The plant primarily produced tinned milk products. Nestlé said it had tried to improve the viability of the factory through new product ranges, adding Maggi culinary products from 2010, Nestlé Health Science medical nutrition products from 2012 and Milo Ready To Drink since 2017.
“These ranges have supported the factory, but as milk is bulk of what the factory makes, the newer ranges aren’t enough to maintain manufacturing at the site,” McIver said.
“At the same time, the equipment in this factory is old, and the investment we need to make sure it can operate reliably in the future means that the factory is no longer viable,” he said.
Following the closure, the site will be vacated and sold. Equipment currently at the site is either owned by Nestlé or leased, and as it will be relocated, will not be part of the sale.
Employees will be supported in finding alternative work, including outplacement services and retraining, the company said.
