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Lactalis, the French dairy giant, has announced plans to shutter its manufacturing facility in South Brisbane, Australia, impacting approximately 202 employees.
The historic site, which produces brands including Pauls, Ice Break, and Vaalia, is scheduled to cease operations in July. According to the company, production volumes will be transferred to its facility in Nambour on the Sunshine Coast, as well as to other sites across its Australian network. The decision follows a review of the group’s industrial footprint, with the company citing the constraints of the inner-city location and ageing infrastructure as key factors. The site sits within a precinct earmarked for major urban redevelopment ahead of the Brisbane 2032 Olympic Games.
Mal Carseldine, CEO of Lactalis Australia, commented: “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. This is not a reflection of the dedication or performance of our people […] We are committed to treating employees with care, respect, and transparency”.
Lactalis, which previously shut down its yoghurt plant in Echuca as part of an earlier consolidation drive, confirmed it plans to invest over A$200 million ($135 million) to modernise its remaining Australian facilities. The company also recently expanded its local presence with the acquisition of Fonterra’s Australian consumer dairy business.
Source: Just Food
