Vesco Foods, formerly known as Kailis & France Foods, has become the second Western Australian food manufacturer in as many weeks to announce plans to close or scale down its operations.
Vesco Foods, formerly known as Kailis & France Foods, has become the second Western Australian food manufacturer in as many weeks to announce plans to close or scale down its operations.
Vesco Foods, formerly known as Kailis & France Foods, has become the second Western Australian food manufacturer in as many weeks to announce plans to close or scale down its operations.
Vesco said today it would stop producing coated fish products at its Osborne Park plant over the next three to four months.
It follows the recent announcement by smallgoods manufacturer Don KRC, which manufactures products under the Watsonia and Don brands, that it will close its Spearwood facility next year. The Don closure will result in 220 staff losing their jobs.
Vesco Foods currently provides frozen meal products and frozen coated fish products to many national and international brands including supermarkets, retail outlets, restaurants and catering institutions.
Its chief executive Ian Halliday said the decision followed an extensive review of the company's coated fish operation which has been impacted by increased costs, declining market share and an inability to secure sufficient raw fish supplies.
"Ceasing production of coated fish allows us to focus on our frozen meals division which is an area of growth for Vesco Foods," he said.
"We have invested approximately $2 million over the past 18 months in frozen meal infrastructure and equipment at our Osborne Park site in Western Australia to meet increasing demand."
Mr Halliday said approximately 35 employees at the Osborne Park site would be impacted by the decision to stop producing coated fish products but the ongoing growth of the frozen meals division meant most would be redeployed.
"After 34 years the decision to stop producing coated fish is sad news for some of our longest serving and very loyal employees," he said.
"However it signals an exciting future for frozen meal production in Western Australia and many of those people who work in the Osborne Park coated fish production plant have an important ongoing role to play in the company within our growing frozen meals division."
Mr Halliday said Vesco would work with customers to minimise the impact of the decision to cease the manufacture of coated fish products within the next three to four months.
Rank | Company | # | |
---|---|---|---|
39th | Lionel Samson Sadleirs | $191.0m | |
40th | New Town Toyota | $179.0m | |
41st | Vesco Foods | $173.0m | |
42nd | Bhagwan Marine | $169.0m | |
43rd | EC&M | $160.0m |