Lactalis Australia, part of the wider French dairy giant Lactalis, is set to close a processing site in a suburb of Brisbane, in the state of Queensland.
The closure of the manufacturing site, located in the suburb of South Brisbane, comes after a “detailed review” of the company’s operations and long-term manufacturing footprint across Australia.
The business said the closure will not compromise national food supply in Australia, with production set to be consolidated into existing, modern facilities across Lactalis’ Australian network.
Lactalis Australia also said that there will be “no impact” on product availability or quality for consumers, and no changes to existing milk supply contracts for dairy farmers because of the closure.
According to the company, the decision reflects changes to the surrounding area around the site, and the site’s suitability for long-term manufacturing operations, alongside the challenges associated with ageing infrastructure that would require substantial investment to modernise and remain compliant.
The site is expected to close in July.
Mal Carseldine, Chief Executive Officer at Lactalis Australia, said the decision had “not been taken lightly”.
“This is a difficult decision, and one we have approached carefully and responsibly. Our South Brisbane site has a long history, but its location and infrastructure no longer align with the requirements of a modern, efficient manufacturing network,” Carseldine said.
He added that the move to close the site “is not a reflection of the dedication or performance of our people”.
The Lactalis Australia CEO said that affected staff members will be supported through a “comprehensive consultation and transition process”.
“This decision does not reflect a reduction in our commitment to Australia or Queensland. Lactalis remains firmly committed to Australian dairy manufacturing, with continued investment and employment across our national network,” Carseldine said.
Processing currently undertaken at the South Brisbane site is set to be reallocated over time to other Lactalis’ sites in Australia, “making greater use of existing, fit-for-purpose sites”.
Lactalis said it continue to invest significantly in its Australian operations, with more than AU$200 million committed to modernising manufacturing facilities across Australia through 2025 to 2026.
The company said it remains committed to its ongoing manufacturing and corporate operations in Queensland and across Australia.
