Aryzta has agreed to invest around €40 million in the construction and commissioning of a new bakery in Perth in Western Australia.
The new facility will serve quick service restaurants, food service and retail customers from its site located in Peel Business Park, which is 60 kilometres from the central business district in Perth, the company added.
The project will take two years to complete from the commencement of construction, according to the bakery giant.
Aryzta AG chair and interim CEO, Urs Jordi, commented, “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 €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,” Jordi added.
The new facility will see Aryzta generate 80 direct roles and over 500 indirect employment opportunities in the Perth area.
The project will also enhance the bakery firm's ESG credentials in Australia by removing an estimated 1.7 million food miles, currently involved in transporting bakery items to customers in Western Australia from its two existing facilities in New South Wales and Victoria.
The company expects to lower its carbon footprint by over 700 tonnes annually through this project.
The availability of local raw materials, such as flour, dairy and sugar, in Australia will also minimise food miles.
The new facility will mostly rely on power from a local renewable microgrid, which sources energy from a solar and battery storage system, Aryzta added.