Nestle to close Tongala dairy factory

Global food and beverage giant Nestle will shut its Tongala dairy factory within 18 months.

THE world’s largest food company, Nestle, plans to close its dairy factory at Tongala, with the loss of 106 jobs.

The factory, which largely produces tinned milk products, will be progressively closed over the next 18 months.

Nestle general manager Andrew McIver said part of the reason behind the closure was that consumers bought less tinned milk than they used to and cheaper imports had eroded the business.

“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,” Mr McIver said.

Nestle said it had invested to improve the factory in recent years by adding new product ranges.

This in included Maggi culinary products in 2010, Nestle medical nutrition products two years later and Milo Ready to Drink in 2017.

Mr McIver said the newer products were not enough to maintain manufacturing at Tongala.

He said manufacture of products made at Tongala would be moved to Nestle factories overseas during the next 12 to 18 months.

Closure of the Tongala plant would occur between late 2020 and mid-2021, he said.

“We are sad to be losing committed and talented colleagues and I want to thank each person who has worked at the factory for their hard work.” he said.

Nestle said equipment at the site was owned by it or leased and would be relocated.

It ruled out the equipment being part of the sale of the site.