The company announced in 2019 it would be gone 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 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 said it would 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.”
The August 2019 announcement the factory would wind down operations took the town by surprise, with 106 roles to be disappear.
Nestlé said tinned milk production was set to move overseas, the property sold off and eligible employees supported to find new jobs.
At the time Mr McIver thanked colleagues for their strong contribution to the company and said the closure was in no way a reflection of their efforts.
“People just don’t buy tinned milk like they used to, and cheaper imports have eroded our business further,” Mr McIver said.
“At the same time, the equipment in this factory is old, and the investment we need to make sure it can operate reliably in the future means the factory is no longer viable.”
The good job news, albeit short term, could not have come at a better time with thousands of people across the region already having been laid off, stood down or in risk of unemployment at COVID-19 tightens its grip on the country.
SPC Ardmona is also now running its production line around the clock to keep up with consumer demand, much of it driven by panic buying and hoarding.
And specialist recruitment and workforce management company Food Industry People Group announced it had vacancies across the region for 1500 people in the food processing industry.
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