Lion Dairy & Drinks (LDD) is investing A$40 million US$27.4 over the next three years that will lay the groundwork for the company’s growth strategy in the Western Australian dairy market.

 

The investment, which the company terms as being “transformative”, will include the modernization of its plant in Perth resulting in greater efficiency, greater manufacturing capacity, and a more direct access to market. The company will also construct a new Western Australian Distribution Center and new internal roads at the site.

 

In addition, the company is planning to consolidate its current multiple depot footprint to a single depot at its Bentley site, outsourcing its warehousing to logistics firm, Linfox. This move, however, will make the group’s logistics functions at Bentley redundant and will result in the loss of 30 jobs.

 

“Any decision that results in job losses is taken extremely seriously,” said LDD Managing Director, Peter West in a company statement. “Today’s announcement is about ensuring we remain a sustainable and viable operator in the Western Australian dairy market today and in the future. The outsourcing of the warehouse operations is no reflection on the people working in this area at the Bentley site – the contribution that they have made to our site over many years has been much appreciated.”

 

The A$40 million investment, which will be funded through a planned sell-off of surplus land assets, comes on the heels of the company’s $1.5 million investment in Bentley over the past year, and  the opening of Lion’s $150 million specialty cheese plant in Tasmania this past May, reports Farm Weekly.

 

Mr. West expressed to Australia’s Farm Weekly that the company's current investment is indicative of the group’s “intent to compete and grow the WA dairy business.”