AAP General News (Australia)
04-28-2000
Vic: Bonlac to shed four plants, 300 jobs
MELBOURNE, April 28 AAP - Australia's second largest dairy company, Bonlac, is to close
four plants in Victoria and Tasmania, resulting in the loss of 300 regional jobs.
Over the next five months, the company will close the four manufacturing plants - at
Drouin and Toora in Gippsland in Victoria's south-east, at Camperdown in western Victoria,
and at Legerwood in Tasmania.
Production will be transferred to other operations within Bonlac to ensure continuity
of supply to customers in Australia and overseas, Bonlac said in a statement.
Bonlac chief executive office Alex Sloan said the company would concentrate production
at its most efficient plants in Victoria and Tasmania as it pursued greater efficiencies
and improved returns for farmers.
A total of about 300 jobs would be shed across the company, Bonlac said, with a small
number of new positions being created by the transfer of some production activities.
"The changes are necessary to ensure an improved return to our supplier shareholders
and to enhance the future prospects and financial strength of the company," Mr Sloan said.
"Naturally we understand the impact this will have on many people within and outside
the company, and we will be working hard to assist those who will be affected.
"We also know that our decisions will impact on some communities and we will consult
local authorities to find ways of minimising the impact."
Mr Sloan said inefficiencies had been built into Bonlac's infrastructure through mergers
and acquisitions over 15 years.
"The reality is that today we have 13 production sites compared with only five operated
by a similar sized cooperative," He said.
"This legacy had an inevitable effect on our recent performance and the board has decided
to address the issue by focusing on key sites that will be developed as centres for excellence."
AAP jlw/adh
KEYWORD: BONLAC
2000 AAP Information Services Pty Limited (AAP) or its Licensors.
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