Nestle keeps Tongala factory open to meet coronavirus demand

General manager Andrew McIver said while Nestlé’s primary focus remained on its staff, there was also a responsibility to keep shelves filled during the crisis.

“It’s important we make sure our products are available in store for consumers,” Mr McIver said.

“To do this, we will maintain production at Tongala until early next year, while introducing products from other factories more gradually.

“We remain focused on minimising the impact of the change on employees and supporting them as they plan for the future.

“Workers who have already been offered jobs in other companies will be able to take up those offers and leave with their full redundancy entitlement.”

While the company has delayed the closure, it said it would not be able to leave the factory open permanently, with both the dairy section and health nutrition section still scheduled to be closed in early 2021.

In a release to the media, the company said “the investment needed to operate the dairy facility for the long term is not viable”.

The August 2019 announcement the factory would wind down operations took the town by surprise, with 106 jobs to disappear.

Nestlé said tinned milk production was set to move overseas, the property would be sold off and eligible employees would be supported to find new jobs.

At the time, Mr McIver thanked his colleagues for their strong contribution to the company and said the closure was in no way a reflection of their efforts.

“People just don’t buy tinned milk like they used to, and cheaper imports have eroded our business further,” he said.

“At the same time, the equipment in this factory is old, and the investment we need to make sure it can operate reliably in the future means the factory is no longer viable.”

The good job news, albeit short term, could not have come at a better time with thousands of people across the region already having been laid off, stood down or at risk of unemployment at COVID-19 tightens its grip on the country.