D’Orsogna to invest $66m

Family owned smallgoods producer D’Orsogna is aiming to nearly double its annual sales after beginning development of a $66 million factory in Victoria.

The big investment comes 10 years after D’Orsogna purchased a small processing plant in Mt Waverley, south-east of Melbourne.

Managing director Brad Thomason told Business News the group had looked at several east coast takeover opportunities since then to support its growth, but none came to fruition.

Mr Thomason said the new greenfields development meant the group was able to design a large-scale facility with an efficient layout and modern equipment to support its growth plans.

The group has annual sales of $225 million, including $180 million in WA, with most production from its facility in Palmyra, which will be retained.

“We’ve had good growth, given the circumstances and the economy,” Mr Thomason said.

The new facility in Melbourne will support a large increase in east coast sales.

“We have ambitious expansion plans for the business over the next few years,” he said.

“We expect a near doubling of what we do now.”

Mr Thomason said the group was investing in some new value-added products and was also starting to develop international export markets.

The new factory has been financially supported by a Victorian government industry transition fund, which is designed to create new jobs for former automotive workers.

Mr Thomason said the Victorian government was proactive in its support, assisting the company with environmental and other approvals.

The 10,858 square metre factory is being built on a three-hectare site at Merrifield Business Park in Melbourne’s north.

D’Orsogna has signed a $41 million turnkey contract with MAB Corporation and Gibson Property Corporation to develop the factory.

MAB and Gibson are developers of the Merrifield Business Park and described the contract as one of the largest industrial deals in Melbourne for the past year.

They have contracted construction company Qanstruct to design and build the factory.

In addition, D’Orsogna plans to invest $25 million in equipment for the factory, which will employ about 240 people.

Mr Thomason said the new factory would be operating by late this year or January next year.

D’Orsogna is ranked at number 39 on the BNiQ listing of private companies in Western Australia, just below Lionel Samson Sadleirs and Kinetic IT.

The business was first established at a butcher shop in West Perth 1949.

This ranks it at number 19 on the BNiQ listing of family owned business dynasties in WA.

Other family businesses that have been operating for a similar time include Picton-based contractor Piacentini & Son, established in 1944, and meat pie manufacturer Mrs Mac’s (1954).