Lactalis will close its factory in Echuca, Victoria this year as it consolidates operations at its Bendigo site, where much of an $85 million investment will be spent.
Lactalis CEO, Mal Carseldine, said the decision came after a review of its Yoghurt and Desserts division within its long-term plan.
“The plan sees us have one regional hub in Victoria that is fully utilised. I want to acknowledge the contribution of the Echuca team and the decision is by no means a reflection of their efforts,” Carseldine said.
The closure will affect around 74 employees and contractors.
The Bendigo factory was chosen as its regional hub due to its milk processing capability, operating costs, and site layout.
Carseldine said the investment in Bendigo will add jobs, a new production line, better utilisation of existing production lines, more capacity for yoghurt and custard, updated technology and automation, and a greater focus on the environment and sustainability.
Lactalis brands include Pauls, Vaalia, Ice Break, Oak, Breaka, Lemnos, President, and Galbani.