Nestlé SA on Aug. 28 said it is closing its Tongala factory in Victoria, Australia, affecting 106 jobs.
The closure of the factory, which produces tinned milk products, will occur progressively over a period of up to 18 months, the company said.
"People just don't buy tinned milk like they used to, and cheaper imports have eroded our business further," General Manager Andrew McIver said.
Over the past few years, Nestlé has attempted to improve the viability of the plant by adding new product ranges, including Maggi culinary products and Nestlé Health Science medical nutrition items.
However, McIver said the newer ranges were not enough to maintain manufacturing at the site since milk is the bulk of what the factory makes.
Production at the factory will be moved overseas in the next 12 to 18 months, and the plant expected to close between late 2020 and mid-2021. Nestlé said the site will be vacated and sold following the closure.
The food and beverage giant said it will offer laid-off workers compensation and support in finding alternative work.
