Goodman Fielder changes to baking network

17 January 2017

Goodman Fielder changes to baking network

Goodman Fielder, today announced changes to its baking business as part of its strategy to optimise its network to compete effectively across Australia.

Goodman Fielder Chief Executive Officer, Scott Weitemeyer said the company plans to invest in selected sites, relocate and close others to build a more sustainable business.

“Today’s announcements continue Goodman Fielder’s investment commitment across all of its markets with over $650 million being planned between 2016-2019, of which approximately $200 million will be in Australia,” he said.

The planned changes to the company’s baking business are across its Western Australia, Queensland, New South Wales and ACT operations.

In Malaga, Perth, Goodman Fielder has entered into a commercial supply agreement with a third party for the manufacture of its products and brands for the WA region.   As a result, it is anticipated that Goodman Fielder will cease manufacturing at its Malaga bakery on 1 May 2017.  Customers and consumers across the WA region will continue to receive daily fresh deliveries of all Goodman Fielder products with the same level of focus and commitment as today.

All employees impacted by this decision, (approximately 75) will receive their full redundancy provisions as well as an employee assistance program, outplacement program and career support.

In Queensland, Goodman Fielder has commenced consultation with its employees regarding proposals to relocate production from its Carina bakery to its Burleigh Heads facility and relocate production of garlic bread from its Hemmant site to its Moorebank bakery in NSW.

Should these proposals be implemented, it is expected that the Carina and Hemmant bakeries would cease manufacturing through the second half of 2017 with approximately 140 production roles in total being made redundant.

The consolidation of garlic bread production would also result in the transfer of Erskine Park garlic bread manufacturing to Moorebank.

However, Goodman Fielder anticipates creating more than 60 new positions at the Burleigh Heads, Moorebank and Canberra facilities as the company further invests to accommodate increased production capacity at these sites.

“Today’s announcement is part of our group-wide strategy to generate efficiencies across our baking network,” said Julie Coates, Managing Director, Goodman Fielder Australia.

“We are consolidating our manufacturing network and investing in larger capacity sites to create a more sustainable business for the long term.

“We understand the impact these announcements have on our people and our immediate priority is to ensure that they are supported through this process,” said Ms Coates.

“We remain committed to our customers and consumers in each of the impacted areas and our plans are focused on ensuring they continue to receive daily fresh deliveries from Goodman Fielder.

“The increased investment we are planning across a number of our sites will strengthen our baking business, providing a more competitive and sustainable platform for the future,” she said.

 Ends.

Contact:
Martin Cole
Goodman Fielder
Tel +61 403 332 977