Breaking: Major redundancies expected as Bega Cheese closes cheese manufacturing facility

Bega Cheese. Image: AAP

Workers at the Coburg Bega Cheese factory could face redundancies as the cheese-brand announces it is shutting the factory with immediate effect.

Bega Cheese executive chairman Barry Irvin told Yahoo Finance that 50 jobs will be lost – essentially the majority of staff – but that a few staff will be redeployed.

“The priority at this time is to support our employees,” Bega said in a statement to the ASX.

The facility has made cheese for Bega’s private label and food service cheese business since the site was acquired in 2009.

“The decision to close the site was made following a review of our network which concluded that the Coburg site’s capacity and city location cannot viably support Bega’s expected growth,” Bega said.

The cheese manufacturer said it expects the factory will be worth less than its book value.

Shares for the $1.03 billion company (BGA.AX) are at $4.82 this morning, with the ASX set to open at 10am.

The Coburg redundancies follow the announcement of a loss of 180 jobs at NAB yesterday as the major bank restructures.

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