Latest news with #PeteFindlay
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.
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
