Frozen Fruit Operations Relocated to Bairnsdale

17-Aug-2009

Patties Foods announces that it will be relocating the frozen fruit operations of the Creative Gourmet and Chefs Pride from Silverwater to the company’s main production facility in Bairnsdale Victoria.

Patties has implemented a number of initiatives across the company including improvements in the Bairnsdale bakery over the last year to improve the operating efficiency of the business and deliver quality products to our customers.

The decision to close the Silverwater facility follows a strategic review of the Creative Gourmet and Chefs pride business, which was acquired in May 2007, and after careful consideration of how to optimize the long term performance of the business.

The move will create operational efficiencies un distribution, manufacturing and overheads and benefits for customers including increased capability for new product development, and additional procurement sources. We expect the relocation to result in a one-off restructuring charge of $1.3m and ongoing savings of $750,000 pa.