The investment, which is expected to increase ice cream production by an additional 20m liters per year, will allow Norco to meet current demand for its Hinterland ice-cream range, while making space for new production lines and further expansion in the years to come.
Norco launched its premium ice-cream range, Hinterland, last year and it is now available in 11 flavors across Woolworths stores nationally.
Norco CEO, Michael Hampson, said the factory upgrade, which starts this month, demonstrates Norco’s commitment to building a sustainable future for the co-op’s farmer owners.
“As our largest commercial investment to date, the factory upgrade will allow us to double-down on our commitment to providing value to our farmers while also supporting the future of the local area with greater long-term employment opportunities,” Hampson said.
“We’ve seen the demand for our ice-cream manufacturing services really strengthen over the past few years, and the new facility will allow us to expand our production capacity to meet the needs of our current customers, and attract new ones, while also produce special and innovative flavours without compromising on the delivery of our core lines.
“Our farmer owners have proven time and time again that they can maintain top quality milk even when the environment is tough, so we are confident that with this upgrade we will be able to grow our ice-cream business and meet the growing consumer demand for more complex products at the right price.”
Norco’s factory upgrade has been undertaken with federal and local government support with the coop receiving a A$15m (US$11.2m) grant towards the project as part of a program targeting growth in regional areas.
The works will see an initial job creation of more than 30 jobs in the local community during the construction phase, with further permanent positions becoming available when work is complete.
The first phase of building works is currently under way, and expected to be completed in the second half of next year.