News

Nestlé to stay open in Tongala

By Andrew Johnston

The besieged dairy section of Nestlé’s Tongala factory – which was slated for closure this year – has been given a stay of execution.

The company announced in 2019 it would be gone early this year but facing unprecedented demand for its products due to the outbreak of COVID-19, the company has chosen to delay the closure to guarantee its ability to meet demand.

General manager Andrew McIver said while Nestle’s primary focus remained on its staff, there was also a responsibility to keep shelves filled during the crisis.

“It’s important that we make sure our products are available in store for consumers,” he said.

“To do this, we will maintain production at Tongala until early next year, while introducing products from other factories more gradually.”

“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.”

While the company has delayed the closure, it says the company will not be able to leave the factory open permanently, with both the dairy section and health nutrition still scheduled to be closed in early 2021.

In a release to the media, it was said “the investment needed to operate the Dairy facility for the long term is not viable.”