SPC Global resets manufacturing strategy, cuts investment to $3M

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SPC Shepparton Facility. Image supplied.

SPC Global Holdings Ltd has announced it will reshape its manufacturing network following its recent merger, a move the company says is expected to deliver more than $8 million in annual savings from FY27 while reducing planned capital expenditure.

In an ASX announcement, SPC Global said it had refined its manufacturing strategy to improve capital efficiency, support higher-growth brands and enable international expansion. 

The company stated that the revised approach replaces a previously announced $23.5 million investment transition plan with capital expenditure of just under $3 million.

According to SPC Global, the updated strategy is expected to deliver annualised savings of more than $8 million, compared with $5 million under the earlier plan, while providing greater operational flexibility across its manufacturing network.

The company said it intends to fully exit its Mill Park site by the end of August 2026 as part of what it described as a broader shift to a demand-led operating model designed to better align production with customer demand and lower fixed costs.

SPC Global Managing Director Robert Iervasi said in the company’s statement that the changes followed a reassessment of the group’s manufacturing footprint after the merger.

“Following the merger, we reassessed our manufacturing footprint to ensure capital is deployed efficiently and aligned with our strongest growth brands, strengthening the business for long-term growth,” Iervasi said.

Under the revised model, SPC Global said its high-growth brands would continue to be manufactured in-house. Production of Juice Lab Wellness Shots, which the company said are experiencing approximately 60 per cent year-on-year growth, will relocate to the group’s SPC facility in Shepparton. The company said targeted automation would support scaling while maintaining quality and operational control.

SPC Global also announced that private-label and industrial juice products under The Original Juice Co. will be manufactured under a long-term co-manufacturing agreement with Fair Dinkum Foods, a family-owned Australian business based in Griffith, New South Wales, operated by the team behind The Real Juice Company.

From FY27, the co-manufacturing arrangement is expected, according to SPC Global, to extend fresh juice shelf life to up to 12 months, improve supply chain efficiency, reduce environmental footprint and enable faster, more cost-effective access to international markets.

The company said locating production closer to key citrus-growing regions is expected to shorten supply chains and reduce transport requirements.

SPC Global stated that the transition is expected to create new roles in Shepparton and Griffith, with redeployment opportunities offered where possible. 

It added that the changes reflect a reshaping of its manufacturing network to support future growth and do not represent a withdrawal from Australian manufacturing.

“By deploying capital more efficiently, backing our strongest growth brands and partnering where it makes strategic sense, we are strengthening the business for long-term growth, accelerating international expansion and continuing to invest in Australian manufacturing,” Iervasi said.

The content of this article is based on information supplied by SPC Global Holdings Ltd. For more information, please refer to the official company announcement and communications from SPC Global Holdings Ltd. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.