Bega Cheese's Coburg facility will close its doors immediately the company has announced.
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In a statement the company said the decision was made following a review of Bega facilities, which concluded that "the Coburg site's capacity and city location cannot viably support Bega's expected future growth".
The company said redundancies will occur, although some staff will be offered employment at other sites.
The facility, which is located in Melbourne's northern suburbs, was acquired by Bega in 2009 and has manufactured cheese for Bega’s private label and food service cheese business.