Patties Foods today advised that they would be moving the frozen fruit operations of Creative Gourmet and Chef’s Pride from Silverwater in NSW to the company’s main production facility in Bairnsdale, Victoria.

The decision to shut down the Silverwater facility follows a strategic review of the Creative Gourmet and Chef’s Pride business, which was acquired in May 2007, and after “careful consideration of how to optimise the long term performance of the business”, the company advised.

The Silverwater plant is set to close in January next year, with one-off restructuring costs of $1.3 million expected. The company believes the relocation will counter this cost within two years; forecasting ongoing cost savings of $750,000 per annum.

“Closing a production site is never an easy decision, but this move makes a lot of commercial sense and will provide an improved cost platform to grow the business,” Patties Foods Managing Director, Greg Bourke, stated. “The Chef’s Pride and Creative Gourmet businesses will benefit further from being based in the production heart of the Patties’ business in Bairnsdale.”

“The company is working closely with affected staff to ease the impact of this move.”

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