Processing and packaging moves from Queensland to facilities in Victoria, lowering transport needs
GrainCorp will reduce its transport costs and streamline its supply chain by shifting its oil seeds processing operations to Victoria.
The $125 million move that runs against the trend of manufacturing retrenchment in the state, will boost the competitiveness of locally produced food and food ingredients against imported products and deliver significantly improved environmental performance, the firm’s GrainCorp Oils arm says.
“This project involves creating a strategic hub within Victoria that is located far closer to key oilseed growing regions,” Group General Manager, GrainCorp Oils Sam Tainsh says.
“It delivers a logical and more efficient focal point for the sourcing, crushing, refining and distribution of our locally produced edible oils and food ingredients. This is our $125 million vote of confidence in Australian food manufacturing at a time of uncertainty for many manufacturers in the country.”
The consolidation of edible oils refining and packing operations involves:
Expansion and upgrade of the GrainCorp Oilseeds operations in Numurkah and the GrainCorp Foods facility in West Footscray
GrainCorp Foods’ operations in Murarrie, Queensland will be relocated to these larger locations. As a result, the Murarrie site will progressively cease operations from early 2016, with about 130 jobs lost there and 44 gained in Victoria
GrainCorp Oilseeds’ Numurkah capabilities will be expanded to add vegetable oil processing capabilities
GrainCorp Foods’ West Footscray operations will be upgraded to deliver a world-class food processing plant with additional capability including retail spreads, bakery fats and shortenings.
In explaining the rationale for the shift, the group states that it allows much greater integration of refining and packing operations to where canola is grown and crushed.
“The Murarrie plant is isolated from the major oilseed growing regions and crush plants,” GrainCorp says.
“This means crushed canola oil can require a round trip of up to 3,000km up from crush plants, then back to end customers who are largely located in Sydney and Melbourne.
“This isolation has become increasingly significant as the type of oils used in the food industry has changed.”