Heinz Australia Announces Productivity Initiatives to Accelerate Future Growth

“Heinz is committed to Australia, with more than $20 million being invested to upgrade the beverage manufacturing facilities at Northgate and $5 million invested to enhance the capabilities of the baby food facility in Echuca, Victoria.

5/31/2011 --- Heinz Australia announced productivity initiatives that will consolidate manufacturing to create a stronger foundation for future growth in the Australian and New Zealand markets.

After an extensive international review of its manufacturing footprint and capabilities, Heinz will shift production of sauces, beetroot and some meals products from facilities in Girgarre, Brisbane and Wagga Wagga, to its facility in Hastings, New Zealand. The review will also see around $25 million invested to upgrade beverage facilities in Brisbane and the baby food plant in Echuca.

The decision will result in the loss of 160 jobs at Golden Circle’s Northgate plant in Brisbane, 146 jobs at Girgarre in northern Victoria and another 38 jobs at Wagga Wagga in NSW.

Heinz expects to complete the manufacturing consolidation within 12 months.

“Heinz operates a number of factories across Australia and New Zealand.  Our decision to consolidate manufacturing is a critical step in our plan to become more competitive in a challenging environment, and to accelerate future growth in both markets,” said Heinz Australia CEO Nigel Comer.

“Heinz is committed to Australia, with more than $20 million being invested to upgrade the beverage manufacturing facilities at Northgate and $5 million invested to enhance the capabilities of the baby food facility in Echuca, Victoria.

“After reaching this difficult but necessary decision, our goal is to support affected employees over the coming weeks and months,” Comer added.

”The company will provide redundancy packages, counselling, job search services, new skills training and retirement planning services.  Affected growers are being offered financial and other assistance for transition to other crops or supply arrangements.”

Heinz Australia and Golden Circle will continue to operate 4 factories and employs around 1400 people, including seasonal employees.  These initiatives form part of a global productivity plan that will increase Heinz’s manufacturing efficiency, make better use of existing capacity and drive productivity on a global scale.