Fonterra has announced the installation of two new milk silos at its Cobden manufacturing site in south-west Victoria.
The almost $1 million capital expenditure is part of a $20 million dollar investment package to modernise Fonterra’s sites across south-west Victoria over the next three years.
According to Rob Howell, Cobden site manager, the new silos will create production efficiencies and allow for any potential, future increase in the site's capacity.
"The new silos are really all about future-proofing the Cobden site. They will generate good productivity gains and support future growth, which is great news for our suppliers," he said.
"Fonterra remains deeply committed to manufacturing in south-west Victoria, so we are pleased we can invest to modernise the site and continue to deliver high quality dairy products to our valued customers."
Cobden manufactures a range of products including the popular Western Star butter, as well as cream and milk powders. The site is one of Fonterra’s 10 manufacturing sites in Australia.
Earlier this year, the multi-national dairy company announced it will be investing more than $100m in a new UHT milk processing plant at its Waitoa site in New Zealand's Waikato region. The plant is expected to enable Fonterra to increase its UHT production by 100 percent over the next few years, and will include five new UHT lines producing a range of products including UHT white milk and UHT cream for the foodservice sector.
It also teamed up with A-ware Food Group, a partnership which will see the development of a new cheese plant and dairy ingredients plant in the north of the Netherlands.
Fonterra has also recently announced a corporate shake-up, with the appointment of its new Australian managing director, Judith Swales.