NESTLE Purina PetCare will spend $35 million upgrading its Blayney pet food factory in a move that will ensure the plant's long-term future in the town.
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Details of the upgrade were discussed at Blayney Shire Council's September meeting earlier this week.
Council general manager Andrew Roach described the proposed upgrade as "great news for Blayney".
He said although the investment would not create any additional jobs at the factory in the long-term, it would ensure the plant remained competitive and viable.
Ultimately it would guarantee the future of the 275 staff who worked at the site, he said.
The factory, on the Blayney to Millthorpe Road, is the town's biggest employer.
Several councillors welcomed the news, saying there had been questions raised over the future of the plant within the local community over recent years.
Mr Roach said the upgrade would involve the introduction of new plant and equipment and more modern technology.
This would allow output to increase by about one-third, from 120,000 tonnes a year to about 160,000 tonnes.
Council staff met senior staff from the factory recently to discuss the proposal.
Plant manager Steve Elsworth yesterday confirmed the upgrade was being planned but said details were still being finalised.
Pet food produced at the Blayney factory is distributed for sale in Australian and overseas markets.
The factory, which was previously owned by the Nestle Friskies group, became part of a larger worldwide pet care business following the acquisition by Nestle of the Ralston Purina business in 2001.