Reprieve for Kiewa factory

By Country News

Murray Goulburn says its Kiewa factory will be saved until at least the likely takeover of the company by Saputo.

In May the Kiewa factory, along with sites in Rochester and Edith Creek in Tasmania, were announced as casualties in Murray Goulburn’s asset and footprint review conclusions, with the Kiewa factory expected to be fully closed by the first quarter of the 2018-19 financial year.

‘‘The proposed full closure of our Kiewa facility has been postponed due to a range of commercial considerations,’’ a statement from the co-operative said.

‘‘Cream cheese production will therefore continue at our Kiewa facility, with current operational requirements maintained for at least the period until completion of the Saputo transaction,’’ it said.

‘‘After completion, the continued operation of the Kiewa facility will be a matter for Saputo.’’

The news was not as good for Rochester.

‘‘The Rochester site is included in the assets to be acquired by Saputo. MG intends to close Rochester by quarter three of the 2017-18 financial year but does not intend to mothball the site and cannot comment on Saputo’s intentions for the site,’’ the statement said.