Norco ice cream factory to be rebuilt after 170 jobs cut

One of Australia’s oldest companies has been thrown a lifeline, weeks after standing down 170 workers and warning more jobs were on the line.

One of Australia’s oldest dairy companies, which recently stood down 170 workers, has been given new hope after a rebuild of its ice cream factory was confirmed.

The heritage-listed Lismore factory in NSW was left inoperative following mass flooding in the region, leaving the dairy giant with a $141.8 million bill.

The Northern Rivers business welcomed support from the federal and NSW state government’s Anchor Business Support Program, accepting an offer of a $34.7 million grant, which they had initially said was not enough to save the factory.

The funding is further supported by an extra $11 million in funding from 2019, delayed due to the pandemic, from the Regional Growth Fund.

Norco will co-contribute an additional $59 million in order to “safeguard the factory’s future for its workforce”.

The Norco ice cream company in south Lismore will rebuild its flood ravaged facility.

It comes just days after it was revealed Norco had stood down 170 workers, as an original $8 million in government funding had come to an end.

Norco chief executive Michael Hampson said it is an incredibly rewarding outcome.

“We know how important this factory and its operations are to this region and we’ve always been committed to do everything we can, within our means, to see a future for the facility,” Mr Hampson said.

Norco CEO Michael Hampson is excited about the federal and state government funding to save the Lismore factory.

“While we’re extremely grateful for the government funding we’ve been allocated, it is known that it fell short of what we needed for a complete rebuild – and this is because of the scale of damage incurred and the total cost of the floods to the co-operative, which is still estimated to be well over $100 million with this revised project.

“Ideally, in order to employ as many local people as possible, we’d be rebuilding a facility to the same scale as what we were working towards with the previous upgrade (pre-floods).”

Mr Hampson said there were changes made to the rebuild plan to fit budgetary constraints.

“The revised plan will see a different sort of facility being rebuilt and to make this possible, Norco will be taking on a greater level of risk – something we’re prepared to do in order to safeguard jobs, support other small and medium businesses in the region, and offer a sense of hope to a community of people who have already endured so much,” he said.

Norco amid the February floods in Lismore. Picture: Supplied

The 100-per-cent Australian farmer-owned dairy consists of 281 members across 190 dairy farms in northern NSW and southeast Queensland.

Norco employee Trent Dobrunz, who was close to celebrating 10 years at the factory prior to the floods which devastated the facility, said he appreciated the efforts the company made to pay workers for seven months following the floods while the factory was inoperative.

“I’m excited by news of the rebuild and I can’t wait to come back to work when construction is complete and operations are back in full swing,” Mr Dobrunz said.

“This is a great day for the ice cream factory employees and will send much-needed positive signals right through the Lismore community.”

Norco will rebuild with the help of federal and state government funding.

Third generation Norco dairy farmer Warren Gallagher said the past few years have been difficult for dairy farmers.

“At Norco, we are one big family; a stronger Norco means a stronger dairy industry in Australia – particularly due to the co-op’s ability to help drive improved farmgate milk pricing,” Mr Gallagher said.

“The Norco ice cream factory is a Lismore institution, so we’re thrilled to see it survive and to be able to play a part in continuing to deliver great-tasting ice cream to consumers,” he said.

Norco’s product range on display back in 1963. Picture: The Northern Star Archives

Mr Hampson reminds those celebrating this milestone that other businesses in the region are still in need of support.

“Today represents a very positive step forward for the ongoing Lismore recovery efforts. By re-establishing operations, Norco will resume a significant amount of activity that will benefit the local community and we hope this gives smaller businesses and employers like cafes, restaurants, and motels the confidence to rebuild – but they’re certainly going to need greater support to do so.

“Norco has been part of the Lismore community for more than 127 years and it’s great that we can now set our sights on the next 127 years of co-op success,” he said.

“But beyond this, we also want to see the Northern Rivers business community thriving once again and this can only happen with greater financial support from both the state and federal governments – because jobs, livelihoods and the future of Lismore depends on it.”

The historic business will rebuild its Lismore factory following flood damage. Picture: The Northern Star Archives