MORWELL MANUFACTURING PLANT PRESENTED BY HOWARD VELLA (MANUFACTURING MANAGER) Growing sociability and wellbeing in our world Agenda • The story so far • Our product range • Some statistics • Future Opportunities 2 Morwell Site History • Conception August 1996 • Board approval November 1996 • Construction started at Morwell January 1997 • Production ex Murray Bridge • National Foods acquire DF September November 1997 2008 • NF acquired by KIRIN Holdings December 2009 • Project Rainbow Announced June 2010 3 Aerial View New Engineering W’shop 4 Current Range of Products 5 Products Still Under Transition 6 Yoghurt Manufacture • Milk • Homogenisation • Pasteurisation High quality with low bacteriological levels • • • • • To 41°C for inoculation with culture Cooling Incubation Cooling Filling /packing Cold room Prevents creaming, and distributes fat At 91°C for 5 minutes, improves the milk for the addition of culture, and ensures the end product’s consistency is thick and creamy Reduces the risk of whey separation 8 to 10 hours To stop the incubation process Into pots of various sizes, fruit added if required Temperature brought down to 4°C before transportation to depot 7 Site Numbers • Factory Size (approx.) • • • • • 12000 sq. m Employees 162 (plus casuals) Raw Materials Storage 435,000 litres Stock Keeping Units (SKU’s) >100, over 21 bases Production Lines 11 Production Volume 2010 - 53,000 Tonne 2012 - 76,000 Tonne • Processing capacity 91,000 Tonne (53,000T pre Rainbow) • Product Range • Yoghurt – stirred and set • Dairy desserts (custardd & Fruiche) • Sour cream 8 Site Capability Pre Rainbow Post Rainbow - Yogurt 44,000 78,700 - Desserts 7,800 7,800 - Sour 1,200 4,500 Total 53,000 91,000 nil 1 - FFS 13.4 (4 lines) 16.8 (4 lines) - Pre Form Cup 3.9 (4 lines) 8.0 (5 lines) - Tubes 3.2 (1 line) 3.2 (1 line) - Pallecon Filler .16 (1 line) Processing – annual tonnes Pilot Plant Filling – million cups / week .29 (1 line ) Total 20.7 28.3 Inbound Warehousing 1,678 2,435 Cooling Cells 96 125 Warm/Hot Room 40 130 300 pallets 300 pallets Cold Room 9 Processing Plant • Base o Stirred Yogurt o Natural Set Yogurt o Fromage Frais o Custard o Sour Cream • Processing Plant Stats o 2 Pasteurisers o 17 Maturation Tanks o 26 PFS Tanks o Max Processing Capacity is 91 million kgs per annum 10 Filling Line Fruit Dosing Tecma Pak Case Packer New Arcil Filler New Ermi Filler 11 Automated Pallet Movement 12 Packaging Warehouse 13 Rainbow & Morwell 2025 • Rainbow o Strategic intention of removing excess capacity in Dairy industry o Create centre of dairy foods excellence @ Morwell o Support capacity / growth and innovation to 2014/15 o Introduction of shelf ready packaging • Morwell Future – 2025 o Planning in progress to review Morwell foot print requirements; o Normal Growth o Repatriation of 3rd party manufacture – Pouches & Le Rice o Consider emerging trends in categories and capabilities o Desserts, Pot set 14 Morwell Projects Project Timing Progress Reformulation of Light & Original Yoplait and Yoplus and introduction of sleeved 4 pack February 2012 Complete Replacement of Hassia Tube line with Arranow filling Line April 2012 In Progress Construction of humidity and temperature controlled shelf life Incubation Room January 2012 In progress Development of Dairy Dessert product lines in square tub format and increase in Pallecon filling capacity June 2012 In progress Modification of downstream packaging equipment to facilitate shelf ready packaging formats for major grocery customers June 2012 Complete Devoted underground electricity supply via Vic Govt support Late 2012 Approved Developing Morwell footprint strategy and business case for the next generation of growth and innovation Qtr 3 2012 In progress 15 Thank you Questions ? 16