Latest news with #BegaGroup
Sky News AU
07-05-2025
- Business
- Sky News AU
'Devastating': Hundreds of jobs impacted by Bega Cheese's announcement it will shut its Strathmerton, Victoria plant
Australian diary giant Bega Cheese has confirmed it will shut one of its plants in regional Victoria, with hundreds of jobs to be impacted by the shock announcement. The Bega Cheese site in Strathmerton, near the New South Wales border, will undergo a phased closure with expectations it will fully wind up operations in mid-2026. The cheese processing and packaging operations in the rural town will instead be consolidated at the company's expansive Ridge Street, Bega facility in south-east NSW. Bega Cheese said 300 staff will be impacted by the announcement, with re-deployment opportunities to be assessed where possible. The Liberal Member for Northern Victoria Region, Wendy Lovell, described the closure as a "devastating decision", which will have a ripple effect across the region. Strathmerton, which is located about 15km west of Cobram and 55km north of Shepparton, had a population of 1,072 at the 2021 Census. "It is always disappointing when companies are forced to move operations away from regional Victoria, and my first thoughts are with the workers and their families affected by this devastating decision," Ms Lovell said. "My immediate priority is ensuring Bega redeploys as many staff as possible to the Tatura site and works with other local manufacturers to place affected workers into new jobs. "The state and federal governments must also step up and provide support and retraining assistance for workers needing to transition to other industries. "Local businesses supplying goods and services to the Strathmerton plant will also face heavy impacts, with economic ripples felt across the entire region." Bega Group Chief Executive Officer, Pete Findlay, said the company was "very aware of the impact of this decision". "We are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community," Mr Findlay said. "Where possible, we will offer re-deployment to employees and continue to support them through this period." Mr Findlay said that "as the business maintains its focus on delivering productivity improvement and growth, we continue to look at opportunities to simplify our operational footprint and invest for the future ensuring we maintain globally competitive infrastructure". Five other company-operated Victorian manufacturing sites, in Port Melbourne, Tatura, Morwell, Chelsea and Koroit, will remain. Together, they employ more than 1,700 people. About 100 jobs in the Bega Valley are expected to be created by the decision to consolidate Strathmerton operations in the NSW town the company is named after. Ms Lovell said it was "sadly unsurprising that a company with sites in other states would choose to relocate to NSW, where business conditions are more competitive and government policy encourages – rather than punishes – investment and job creation". "Recent analysis of Australian Bureau of Statistics data shows 129,000 Victorian businesses closed in 2024 – over 350 a day – while more than 3,000 moved interstate. "This mass exodus reflects the rising cost of doing business in Victoria, fuelled by the Allan Labor government's regime of punitive taxes and suffocating regulations."
Yahoo
06-05-2025
- Business
- Yahoo
Bega Group to shutter Strathmerton plant in consolidation exercise
Australian food company Bega Group plans to close its cheese processing and packaging facility in Strathmerton in Victoria. In a statement issued today (6 May), the company said the phased closure, expected to be completed by mid-2026, will see Strathmerton's functions transferred to the company's Ridge Street site in Bega, New South Wales. Bega Group CEO Pete Findlay said: 'As the business maintains its focus on delivering productivity improvement and growth, we continue to look at opportunities to simplify our operational footprint and invest for the future ensuring we maintain globally competitive infrastructure.' The decision follows an 'extensive review' and will impact approximately 300 employees with the change at the Strathmerton site. Bega Group said it is 'working closely' with the impacted workforce and will 'support' them as they navigate the transition. Findlay said: 'We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community. 'Where possible, we will offer re-deployment to employees and continue to support them through this period.' Bega Group stated that the consolidation of the operations is expected to generate A$30m ($19.4m) in annual cost savings by 'eliminating duplication and lowering fixed costs'. The company expects a non-cash impairment of between A$30m and A$40m related to the Strathmerton facility's assets, including buildings, plant, equipment, and other assets. Additionally, the cheese maker anticipates one-off cash costs in the range of A$30m to A$40m, primarily related to redundancy payments for affected employees. To support the transfer of operations, the company expects to invest approximately A$50m in the Ridge Street site to ensure the facility has the necessary capability and capacity to take over the combined operations. The investment at the Ridge Street facility is aimed at modernising its cheese processing and packing capabilities and is expected to create around 100 jobs in the Bega Valley. The modernisation of the Ridge Street site will be funded within the company's normal capital expenditure programme. Once the consolidation is fully complete, Bega Group anticipates an earnings per share improvement of two Australian cents. The company said the consolidation move will not impact the supply of cheese products during the transition period. Even after the closure of the Strathmerton site, Bega Group said it will continue to have a 'strong presence' in Victoria, where it operates five manufacturing facilities located at Tatura, Morwell, Chelsea, Koroit, and Port Melbourne.
Sydney Morning Herald
06-05-2025
- Business
- Sydney Morning Herald
Bega to slash 300 jobs from its Victorian workforce
Two hundred jobs will be made redundant in Victoria, and another 100 moved to New South Wales, as part of dairy manufacturer Bega Cheese Limited's plan to wind down operations at one of its Victorian facilities. On Tuesday, Bega Group announced that its cheese processing and packaging operation in Strathmerton, northern Victoria, will cease to exist by mid-2026. The operation will be folded into an existing facility in Bega, New South Wales. Bega's CEO Peter Findlay said the closure was aimed at simplifying Bega's footprint and having 'globally competitive infrastructure'. Loading 'We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community,' said Findlay in a statement. 'Where possible, we will offer redeployment to employees and continue to support them through this period'. As part of the change, Bega will invest in the Bega site 'to create approximately 100 jobs in the Bega Valley'. Strathmerton, population 1072, has 49 locals employed at the Bega facility as of the most recent census, around ten per cent of the working-age population. A further 5 per cent work in dairy farming.
The Age
06-05-2025
- Business
- The Age
Bega to slash 300 jobs from its Victorian workforce
Two hundred jobs will be made redundant in Victoria, and another 100 moved to New South Wales, as part of dairy manufacturer Bega Cheese Limited's plan to wind down operations at one of its Victorian facilities. On Tuesday, Bega Group announced that its cheese processing and packaging operation in Strathmerton, northern Victoria, will cease to exist by mid-2026. The operation will be folded into an existing facility in Bega, New South Wales. Bega's CEO Peter Findlay said the closure was aimed at simplifying Bega's footprint and having 'globally competitive infrastructure'. Loading 'We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community,' said Findlay in a statement. 'Where possible, we will offer redeployment to employees and continue to support them through this period'. As part of the change, Bega will invest in the Bega site 'to create approximately 100 jobs in the Bega Valley'. Strathmerton, population 1072, has 49 locals employed at the Bega facility as of the most recent census, around ten per cent of the working-age population. A further 5 per cent work in dairy farming.
ABC News
06-05-2025
- Business
- ABC News
Bega Cheese to close Victorian processing site to move jobs to NSW
Bega Cheese will close its northern Victorian site in Strathmerton and consolidate its processing and packaging operations into its premises in the Bega Valley. The company announced on Tuesday that after an extensive review, a phased closure of the Strathmerton site was expected to be complete by mid-2026. The decision affects approximately 300 staff at the Strathmerton site. "We are very aware of the impact of this decision, and we are doing our best to manage this transition with care and respect for our Strathmerton employees and the local community," Bega Group chief executive Pete Findlay said. "Where possible, we will offer redeployment to employees and continue to support them through this period." Bega says cheese production will not be affected by the closure of its Strathmerton site. ( ABC Great Southern: Andrew Chounding ) Bega said it expected $30 million in annual savings through the closure of Strathmerton as it moves to eliminate duplication in its production lines. The company said the consolidation would create about 100 jobs in the Bega Valley and that investing in its Ridge Street site would allow it to "enhance capability and modernise its cheese processing and packing operations". "As the business maintains its focus on delivering productivity improvement and growth, we continue to look at opportunities to simplify our operational footprint and invest for the future, ensuring we maintain globally competitive infrastructure," Mr Findlay said. The company has five other Victorian manufacturing sites in Tatura, Morwell, Chelsea, Koroit and Port Melbourne, which employ more than 1,700 people. The Victorian government has been contacted for comment. MP expects 'significant impact' State member for Shepparton Kim O'Keefe said it was disappointing to lose a major employer in the community. "This has a significant impact on those affected and the community more broadly," she said. "I hope that the staff are well supported during this difficult time. "I expect those employed at our Tatura site will also have concerns with the shock closure of Strathmerton." ABC Rural RoundUp newsletter Stories from farms and country towns across Australia, delivered each Friday. Your information is being handled in accordance with the Email address Subscribe
