Hilton Food Group to open Australian processing facility

By Aidan Fortune

- Last updated on GMT

Related tags Hilton food group New south wales Beef Lamb Pork

Hilton Food Group is to open a plant that will stock Woolworth stores
Hilton Food Group is to open a plant that will stock Woolworth stores
Hilton Food Group is to expand its Australian presence with the announcement that it is to construct a new meat processing facility in Queensland. 

The plant is being constructed in order to supply leading Australian retailer Woolworths.

It is planned that the new facility will supply Woolworths’ stores in Queensland and adjacent areas of New South Wales, with a range of beef, lamb, pork and added-value products. Hilton said it expected investment in plant and equipment to be approximately AUS$115 million.

The development is subject to identifying and acquiring a site, government approvals, and the negotiation and finalisation of construction and tenure agreements. It is proposed that Hilton’s Australian subsidiary, Hilton Foods Australia, will finance the new food packing facility, with the current target for commencement of production in 2020.

For the 28 weeks to 17 July 2016, Hilton Food Group saw a 21.3% growth in operating profit. In its interim results, the group reported that its plant in Melbourne, which commenced operations in September 2015, was “in-line with the agreed plan”​.

Hilton Food Group is involved in a joint venture with Woolworths, under which it earns a 50% share of the agreed fees charged by the joint venture company for operating certain of Woolworths’ meat processing and packing plants, based on the volume of retail packed meat delivered to Woolworths’ stores.

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