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Burns Philp closes yeast plant

20-Jun-2002

Australian ingredients company Burns Philp on Thursday announced the closure of a yeast manufacturing plant in South Yarra in Melbourne, reports Dow Jones.

The plant is expected to close at the end of July, leaving Australian customers to be supplied by Burns Philp factories at Camellia in New South Wales state and Toowoomba in Queensland state.

 

The company said the closure allows it to more effectively use spare capacity within the region.

 

The news of the plant closure follows earlier reports in June this year that Burns Philp had reached a preliminary agreement to buy Kraft Foods International's Latin American yeast and bakery ingredients business for US$110 million. The deal marked the company's first step towards a major offshore acquisition after it almost collapsed three years ago following a failed global expansion.