Murray Goulburn to close three manufacturing facilities in Australia, hundreds of jobs to go

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Murray Goulburn (MG) announced that it will close its manufacturing facilities at Edith Creek, Rochester and Kiewa over the next two years, resulting in the loss of more than 300 jobs.

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MG said the move, which follows an asset and footprint review of the business, is aimed at addressing the company’s cost base, improving efficiencies and increasing earning and farmgate milk pricing.

According to the co-operative, the closures are expected to deliver an annualised net benefit of $40 million to $50 million, ensuring that MG has an improved processing footprint going forward.

“It is intended that the Edith Creek facility will be closed by Q2 FY18, the Rochester facility by Q3FY18 and the MG facility at Kiewa by Q1FY19,” MG told the ASX.

“The Rochester and Kiewa closures will occur in a staged manner and are expected to commence in August 2017.”

Commenting on the impending closures, MG’s Chief Executive Ari Mervis said the move will result in the loss of approximately 360 jobs across the three sites.

“We are committed to ensuring that we provide our affected employees with appropriate levels of support and the recognition that they deserve during this period of transition. MG will support employees by providing access to career transition and redeployment services as well as working with Federal and relevant State Governments to leverage existing programs,” Mr Mervis continued.

“These have been difficult decisions to make, however they are necessary steps on the journey to ensure the future strength and competitiveness of Murray Goulburn. A strong MG is of fundamental importance to the Australian dairy industry and these decisions are necessary to lay the foundations for the future.”