TAMWORTH will lose one of its CBD mainstays this year, with Allied Mills announcing the closure of its Marius Street site.
The mill’s owner Allied Pinnacle said it was forced to make the tough decision because the operation, which has been a centrepiece of the city for decades, was “financially unviable”.
Employees have been offered roles at the company’s flour mill in West Tamworth; however, five jobs are expected to go when the doors close.
Less than 18 months ago, 17 jobs were shed when the plant ceased the production of starch and gluten, which left the mill producing only dextrin and caramel colour.
“However, these operations are also non-core operations and proving financially unviable,” a company spokesperson said.
“Full entitlements will be paid to any employee impacted by this change. Staff will receive career transition support, outplacement services and a careers fair is being arranged.
The final date of operation is “yet to be determined”, but the company confirmed it would be within the calendar year.
“Allied Pinnacle has been communicating regularly with its employees for some time to ensure they have as much notice as possible for any change,” the spokesperson said.
“Allied Pinnacle is working closely with its customers, employees and union on the timing and plans.”
The company said its Tamworth flour mill operations would not be affected by the closure and would continue to be an “essential part” of the company’s flour production network.
“Allied Pinnacle is committed to continuing to invest in its core flour, mixes and bakery business and the Tamworth flour mill remains a key part of the Allied Pinnacle business,” the spokesperson said.
In July 2017, GrainCorp sold its 60 per cent share of the mill to Pacific Equity Partners (PEP) for $190 million.
In 2016, the company invested $21 million to upgrade the site to “deliver significant production performance improvements”.
The Marius Street mill was also slapped with $30,000 in fines by the NSW Environmental Protection Authority in 2016, after two separate incidents.
The first was for discharging thermal pollution and the second involved untreated waste water being used to irrigate farmland along Scott Road.