‘An alternative location for the factory is not an option’: Norco commits to rebuild

Amid ‘temporary’ staff redundancies at Norco, the dairy giant is committed to rebuilding the South Lismore ice cream factory. Here’s why.

The future of Norco has been up in the air this week on the back of news that additional grant funding wasn’t sufficient to save it from standing down workers from an uninsured factory wrecked by flood.

Norco had been able to retain its 170 staff via the Anchor Business program, but has been pressuring both state and federal governments to increase this program’s pool from $65 million to at least $100 million.

“The government has made it clear that they will not be offering any further funding for wage support,” a Norco spokesman said.

The current government funding offering wage subsidies to Norco employees ends on September 23 at which point the workforce will be temporarily stood down.

“That is until the factory becomes operational once again at which point the co-op looks forward to welcoming back its workforce,” the spokesman said.

But Norco has no plans to relocate the beleaguered ice cream factory.

“Norco remains committed to rebuilding the facility in the same location and in doing so, supporting the economic revival of the town of Lismore,” the spokesman said.

“That said, Norco will require government support to make this a reality as the 100 per cent farmer owed co-operative cannot wear the full cost of the flood and rebuild process (which includes extra flood mitigation measures) on its own.”

Norco Ice Cream factory in South Lismore.

In a statement on Tuesday, Norco said it welcomed the announcement that the federal and NSW state governments will inject nearly $60 million to support Northern Rivers businesses in their flood recovery efforts.

But Norco was disappointed authorities hadn’t supported any of the three project options the dairy co-operative submitted as part of its Anchor Business Support Grant application.

Norco puts the total cost of the flood to its operations at $141.8 million, with CEO Michael Hampson explaining the factory rebuild remains separate from the government funding.

“Norco has already spent circa $18 million on this project,” a Norco spokesman told the Northern Star.

Norco Ice Cream factory in South Lismore.

Emergency Management Minister Murray Watt said on ABC breakfast radio the government realised that Norco was unable to be insured due to the factory’s location.

“They have suffered extremely large damage and have not been able to operate the ice cream factory since, and I guess that’s why, in addition to this $35 million that has now been offered to them, the federal government has paid nearly six months worth of wages to their workers,” Mr Watt said.

The Minister said they are still in negotiations with the co-op and that Norco has not yet accepted the Anchor Business grant sum of $35 million.

Shadow Emergency Management Minister, Senator Perin Davey, is urging the government to work with the company to ensure the ice cream factory has a future in the region.

“The idea of the Anchor Business Fund was to enable large employers to look at options to rebuild to keep their businesses in the Northern Rivers,” Ms Davey said.

“I understand Norco are still in discussions with the government and I encourage them to work together to ensure the company continues for another 100-plus years in Lismore.”