The Latrobe Valley has benefited from a Victorian budget handout of $10 million to develop a food manufacturing hub at Morwell.
The hub will add new value-add manufacturers on to the existing Bega Cheese fresh yoghurt processing facility.
At 89 hectares, the vacant flat site will be able to accommodate up to 44 prime industrial lots, with the potential to support 1700 ongoing manufacturing jobs.
Victorian Regional Development Minister Mary-Anne Thomas said the funding would be a catalyst for wider economic and jobs growth.
Latrobe City Mayor Sharon Gibson confirmed two businesses had already approached council with interest in establishing manufacturing premises in the food processing precinct.
According to Latrobe City Council documents, the food product manufacturing sector already contributes $168.695 million to the economy, and employs 356 people in Latrobe City.
Gippsland is a significant fresh food production territory, and improved manufacturing facilities at Morwell will value-add to the region’s $7 billion food and fibre sector.
This year, Bega Cheese acquired the fresh yoghurt processing facility at Morwell with its acquisition of Lion Dairy and Drinks, which included the licence to manufacture Yoplait yoghurts and dairy desserts for distribution in Australia and South-East Asia.
The total share acquisition announcement identified Lion was Australia’s largest national cold chain distribution network, with a national manufacturing footprint of 13 sites.
The Morwell site is Australia’s largest yoghurt manufacturing facility, employing 160 staff and producing 91,000 tonnes of product annually.
The Latrobe Valley received the funding for a shovel-ready project that has been several years in the making, and is one of a number of projects funded to enable transition from closure of coal energy industries in the region.
Vegetation buffer zones were planted, the land (previously agriculture) was rezoned from farming to an industrial and commerce zone, and a development plan for 44 proposed new industrial lots was endorsed by council in late 2011.
The site has access to transport routes and energy, waste and water infrastructure.
The $10 million funding from the Victorian Government will enable vital construction upgrades such as the connection of power, water and sewage to the site, and infrastructure to support the movement of heavy vehicles and manufacturing equipment.