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GMF to close more mills in efficiency drive

By Phil Boeyen, ShareChat Business News Editor

Wednesday 25th October 2000

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Food manufacturer Goodman Fielder plans to close two flour mills and two mixing plants in Australia to further improve its manufacturing efficiency.

In June the company announced it was consolidating New Zealand milling operations to two sites at Christchurch and Mount Maunganui, and transferring its Gore oat milling business to a site in Victoria.

The latest changes in the ongoing review are to close two flour mills and two mixing plants in New South Wales and streamline two other flour mills in Victoria and Queensland.

Group MD Australia and New Zealand, Doug McKay, says consolidation will result in a more efficient business, improved competitiveness and lower cost pressures on consumer prices. He says the latest changes will be phased in over the next 18 months.

"A dedicated implementation team will ensure Goodman Fielder minimises the impact on staff and continues to provide security for suppliers and customers during the transition period."

"The wheat-growing industry will notice little change. We will continue to source the same amount of wheat in Australia, however some supply arrangements will change over coming years as the decisions are implemented."

Mr McKay says GMF will continue to look for further ways to increase efficiencies at its remaining milling and mixing sites in Australia including reviewing options for its Greenfield flour mill.

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