Close×

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.

 

 

Packaging News

The PKN Women in Packaging Awards is back for the second year. With a record number of submissions received for the 2025 programme, the depth and diversity of talent across Australia’s packaging value chain has been nothing short of extraordinary.

Minority shareholders in Pact Group have written to the Australian Takeovers Panel asking it to stop the company’s proposed delisting from the ASX, which the company wants to action on 16 July.

A new digital labelling platform, powered by GS1 QR code technology, is set to reshape consumer engagement and usher in a new era of product transparency. The initiative is a collaboration between AFGC, NZFGC, and GS1 Australia and New Zealand.