Australian ingredients company Burns Philp has started breaking down the bakery operations of Australia's largest food company Goodman Fielder after its successful, but hostile, takeover of the company in March this year.
According to a statement from Burns Philp this week, three regional bakeries - Geraldton, Kalgoorlie and Mount Gambier - will cease production from 16 May 2003. In addition, a fourth bakery, Broken Hill, is to close its doors from the 24 April 2003.
Strategies to streamline operations will continue throughout the year together with an ongoing review of baking manufacturing and customer services, the company added.
Focusing on the medium to long term, Burns Philp said it expects to pay particular attention to the relationship between capacity and demand across all baking sites.
Although not enough to stop the Burns takeover bid, Goodman Fielder posted healthy net profits of €38.3 million for the six months ending December 2002.