It remains unclear how operations could change at a Sunshine Coast milk factory after the closure of its sister facility in Brisbane, but the company behind them says it is committed to ongoing production in Queensland.
Lactalis Australia recently announced a planned closure of its South Brisbane site, following a detailed review of its operations and long-term manufacturing footprint across Australia.
The company said that processing would be reallocated to other facilities.
The Nambour factory is about 115km away.
Sunshine Coast News asked the firm what the future held for the local facility and how the shutdown of the metro plant in July could impact it but received a limited response.
“At this stage, Lactalis Australia is not in a position to share any additional detail beyond the public statement issued in relation to the South Brisbane site,” the group stated, before adding that any possible updates specific to the Nambour facility “would be announced in the future”.
But the company revealed, in a press release, why the Brisbane factory is marked for closure.
“The decision reflects changes to the surrounding precinct and the site’s suitability for long-term manufacturing operations, alongside the challenges associated with ageing infrastructure that would require substantial investment to modernise and remain compliant over time,” the company stated.
“The South Brisbane site is located within a precinct that has undergone significant change over time, with evolving planning settings and surrounding land uses increasingly shaping the site’s long-term suitability for industrial manufacturing.”
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Lactalis Australia CEO Mal Carseldine said the decision was not taken lightly.
“This is a difficult decision, and one we have approached carefully and responsibly. Our South Brisbane site has a long history, but its location and infrastructure no longer align with the requirements of a modern, efficient manufacturing network.
“We also recognise the impact this decision will have on the South Brisbane team, many of whom have contributed to the site and the Pauls business for decades. This is not a reflection of the dedication or performance of our people.
“We are committed to treating employees with care, respect, and transparency, and to supporting affected team members through a comprehensive consultation and transition process.”
Lactalis Australia also reiterated its commitment to operations around the country.
“The closure will not compromise national food supply, with production consolidated into existing, modern facilities across Lactalis’ Australian network,” the company said in its statement.
“There will be no impact on product availability or quality for consumers, and no changes to existing milk supply contracts for dairy farmers because of the closure.”
Mr Carseldine added that: “This decision does not reflect a reduction in our commitment to Australia or Queensland”.
“Lactalis remains firmly committed to Australian dairy manufacturing, with continued investment and employment across our national network.”
The company also stated that production at its South Brisbane factory will be redistributed to its other plants, indicating that the relatively close Nambour factory could be utilised.
“Processing currently undertaken at the South Brisbane site will be reallocated over time to Lactalis’ modern facilities in Queensland and interstate, making greater use of existing, fit-for-purpose sites.”
The company also stated that it “remains committed to its ongoing manufacturing and corporate operations in Queensland and nationally” and it continues to invest significantly in its Australian operations, with more than $200 million committed to modernising manufacturing facilities across Australia through 2025–26.
Lactalis Australia, which has 1930s roots, has links to well-known brands including Pauls, Vaalia, Ice Break, Oak, Breaka, Lemnos, President, Galbani and Lactalis Foodservice Australia.
The company also told SCN that the Nambour factory was now being used for a key product.
“Lactalis Australia is currently in the process of marking a milestone year for the Ice Break brand.”
“A 30th birthday celebration bottle, a 500ml Regular Strength SKU, has been in market since January and will remain on shelves until the end of March.
“Of the approximately two million bottles expected to be sold nationally over this period, well over one million will be produced at the Nambour site and sold into the Queensland market.”
The aerial imagery in this story is from Australian location intelligence company Nearmap. The company provides government organisations, architectural, construction and engineering firms, and other companies, with easy, instant access to high-resolution aerial imagery, city-scale 3D content, artificial intelligence data sets, and geospatial tools to assist with urban planning, monitoring and development projects in Australia, New Zealand and North America.
