Nestlé today advised staff at its Tongala factory that it would delay closing the Dairy section of the factory until early 2021.
The decision has been made out of an abundance of caution to ensure products remain on shelf for consumers during this unprecedented time.
A staged closure was initially planned, with the factory’s Dairy section expected to close in Q2 2020 and the smaller Health Nutrition section due for closure in 2021. Today’s announcement means the closure of the two sections will be more closely aligned.
General Manager Andrew McIver said that Nestlé’s primary focus was on supporting its staff.
“At the same time, it’s important that we make sure our products are available in store for consumers. To do this, we will maintain production at Tongala until early next year, while introducing products from other factories more gradually,” Mr McIver said.
“We remain focused on minimising the impact of the change on employees and supporting them as they plan for the future. Workers who have already been offered jobs in other companies will be able to take up those offers and leave with their full redundancy entitlement,” he said.
Unfortunately, the reasons for closing the factory haven’t changed: with ageing equipment and declining sales, the investment needed to operate the Dairy facility for the long term is not viable.
As well as generous redundancy packages, eligible employees have already been given extensive support to find alternative work. This has included expert outplacement services providing guidance and support on potential next steps, retraining and alternative careers. Nestlé has also worked with other local employers, employment agencies, all levels of government and other organisations to explore alternative opportunities.
Following the closure, the site will be vacated and sold.
28 August 2019: Nestlé announces closure of Tongala factory