Swiss food company Aryzta has started the construction of a new bakery facility in Perth, Western Australia.
The projected cost for the entire project is estimated to be around €40 million.
The upcoming facility in Perth is expected to generate 80 direct jobs and over 500 indirect positions in the area. It will cater to quick-service restaurants, food service, and retail customers.
As per Aryzta, this advancement is poised to notably bolster the company’s ESG (Environmental, Social, and Governance) credentials in Australia. The objective is to eliminate an estimated 1.7 million food miles linked to the transportation of bakery items from its current facilities in New South Wales and Victoria to customers in Western Australia.
The anticipated investment is projected to decrease the business’s local carbon footprint by over 700 tons of CO2 annually. Additionally, the utilization of locally sourced raw materials for bakery essentials like flour, dairy, and sugar will not only reduce food miles but also contribute to enhanced sustainability. Furthermore, the forthcoming facility will predominantly rely on a local renewable microgrid, drawing energy from a solar and battery storage system.
Aryzta’s chair and interim CEO, Urs Jordi, said, “Australia is an attractive growth market for bakery products and this expansion in Perth will allow Aryzta to produce fresh and frozen products as opposed to shipping frozen only over long distances from our plants in eastern Australia. The project has very strong sustainability credentials and will generate additional direct and indirect employment. It will reduce food miles and use renewable energy.”
“The €40m investment capex will be funded within our 3.5-4% revenue guidance in our midterm plan to ensure we continue to generate cash and reduce total debt below 3x by 2025. Business performance remains in line with expectations and on track to reiterate our confidence in delivery of our growth and financial targets.”
The facility is scheduled to be completed in two years once construction starts.