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National Foods to close Booval plant

National Foods has announced it will be closing its Booval plant in Ipswich, Queensland in favour of expanding its Crestmead site.

The company said this plan will remove unnecessary duplication in its network and create capacity for future growth. But no date has been set for production to cease at the Booval site.

National Foods will invest $55 million into its Crestmead manufacturing facility to expand its operations from 140 million litres capacity to 250 million litres.

The expansion at Crestmead will involve additional processing and packing capability and will ensure the site can manage all distribution requirements for southeast Queensland.

It is anticipated that the expansion of the Crestmead site and integration of the National Foods South East Queensland (SEQ) manufacturing operations will be completed in early 2011 with the distribution operations to be fully integrated in early 2012.

Arthur Murphy, National Foods supply chain director, said this is strategic decision.

“We have a great business at Booval and great people however when we take into account the duplication in our network and potential for future growth it makes sense to consolidate our volume into the Crestmead site,” he said.

“There will be no impact on local farmers as National Foods will continue to require the milk it buys locally.”

 

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