Hilton Food Group plans for new Australian factory

By Gwen Ridler

- Last updated on GMT

Hilton Food Group revealed plans for another food packing plant in Australia
Hilton Food Group revealed plans for another food packing plant in Australia

Related tags Australia

Hilton Food Group is to build a new meat processing facility in Australia, to expand its packing capabilities.

The factory in Queensland will supply Australian retailer Woolworths and will be financed by Hilton’s subsidiary Hilton Foods Australia.

Currently in the planning stages, the development is subject to identifying and acquiring a suitable sized site, government approvals and the negotiation and finalisation of construction and tenure agreements.

The facility will be capable of supplying beef, lamb and pork products to Woolworths stores in Queensland and adjacent areas of New South Wales, according to the company.

Plant and equipment

Hilton expected investment in the plant and equipment would be about £67M (AUS $115M). Work on the plant and equipment is planned to start in 2020.

The meat processor reported 27.5% growth in operating profit to £17.3M in its interim results for the 28 weeks to July 17 2016.

It linked its success to a weakened pound that strengthened its operations outside the UK, as well as its operations in Victoria, Australia.

The further expansion into Australia followed Hilton’s partnership with Portuguese meat packaging firm Mondelo Continente Hipermercados – known as Sonae – to supply products in Portugal.

Hilton expected it would form a joint venture with Sonae to implement the partnership. The deal would also see Hilton improve Sonae’s facilities.

Meanwhile, Associated British Foods (ABF) revealed this week plans to open a new bakery in Lincolnshire.

Hilton’s Australian ventures

Hilton began its joint venture with Australian retailer Woolworths in 2013, in a deal which was predicted to contribute £2.5M of joint venture net income by 2016.

The joint venture company – Woolworths Meat Co – is 50% owned by a Hilton subsidiary, Hilton Foods Asia Pacific, and 50% by Woolworths.

The meat packing business operates Woolworths meat processing factory in Victoria, supplying 214 stores.

Plans for a new factory in Queensland will further cement Hiltons success in Australia, which Hilton said was ahead of its expectations.

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