Bega Group to pursue Strathmerton plant in consolidation exercise

The Australian food company Bega Group plans to close its processing and cheese packaging installation in Strathmerton in Victoria.

In a statement published today (May 6), the company said that the closing in phase, which will be expected to be completed in mid -2016, will see the functions of Strathmerton transferred to the site of the Ridge Street company in Bega, New South Wales.

Pete Findlay, General Director of Bega Group, said: “As the business maintains its focus on improving and growth in productivity, we continue to look at the opportunities to simplify our operational footprint and invest in the future, saying that we maintain worldwide competitive infrastructure.”

The decision follows an “extensive review” and will affect approximately 300 employees with the change in the place of Strathmerton.

Bega Group said he is “working closely” with the affected labor and that they will “support” them while navigating the transition.

Findlay said: “We are very aware of the impact of this decision and we are doing our best to manage this transition carefully and respect for our Strathmerton employees and the local community.

“Whenever possible, we will offer a deployment to employees and continue to support them during this period.”

Bega Group stated that the consolidation of operations is expected to save annual $ 30 million costs (eliminating duplication and decrease in fixed costs. “

The company provides for a non -effective deterioration of $ 30 million and $ 40 million related to Strathmerton’s installation, including buildings, plants, equipment and other assets.

In addition, the cheese provides that the cash costs in a range of $ 30 million to $ 40 million, mainly related to the redundancy payments of the affected employees.

To support the transfer of operations, the company plans to invest about $ 50 million at Ridge Street’s site to ensure that the installation has the capacity and ability to assume combined operations.

The investment in the installation of Ridge Street aims to modernize its cheese processing and packaging capabilities and are expected to create about 100 jobs in the Bega Valley.

The modernization of the place of Ridge Street will be financed within the Normal Capital Expenditure Program of the company.

Once the consolidation is completed, Bega Group provides for an improvement in the action of two Australian cents.

The company said that the consolidation movement would not affect the supply of cheese products during the transition period.

Even after the closing of the Strathmerton site, Bega Group said that it will continue to have a “strong presence” in Victoria, where it operates five manufacturing facilities located in Tatura, Morwell, Chelsea, Koroit and Port Melbourne.