Historic South Brisbane factory to close, with 202 jobs to go

More than 200 workers are set to lose their jobs with the closure of a South Brisbane dairy factory on a site long coveted by developers and urban planners alike.

The old Pauls Milk factory, more commonly known as the Parmalat site, has operated at the riverside location in some form since 1937, but on Tuesday, workers at the plant were told it would permanently close on July 10.

Site operator Lactalis Australia confirmed the Brisbane production would be “reallocated” to facilities elsewhere in Queensland and interstate, making greater use of existing “fit-for-purpose” sites.

Announcing the closure, Lactalis noted changes in the surrounding precinct, which has become increasingly residential.

Australian Workers’ Union Queensland branch secretary Stacey Schinnerl said 202 employees, plus contractors, would be affected.

“AWU members have been proudly producing dairy products at the South Brisbane site since 1937, including Australia’s first square milk bottles and UHT long-life milk, and we are disappointed to hear this facility will be closing and these jobs will be disappearing,” she said.

“The AWU will be engaging in further discussion with the company about this decision, and working closely with our members at the site to ensure they receive the support they need through this difficult and uncertain time.

“Our priority will be making sure the employer meets their obligations throughout the process, and our affected members receive their full entitlements.”

Lactalis Australia chief executive Mal Carseldine said it was a difficult decision, which the company had approached “carefully and responsibly”.

“Our South Brisbane site has a long history, but its location and infrastructure no longer align with the requirements of a modern, efficient manufacturing network,” he said.

“We also recognise the impact this decision will have on the South Brisbane team, many of whom have contributed to the site and the Pauls business for decades. This is not a reflection on the dedication or performance of our people.

“We are committed to treating employees with care, respect, and transparency, and to supporting affected team members through a comprehensive consultation and transition process.

“This decision does not reflect a reduction in our commitment to Australia or Queensland. Lactalis remains firmly committed to Australian dairy manufacturing, with continued investment and employment across our national network.”

For Lord Mayor Adrian Schrinner, the factory’s departure would offer a “rare opportunity” to unlock inner-city land for housing.

The site was within the state government’s Kurilpa Sustainable Growth Precinct, which encouraged higher-density housing.

“Strong rail, bus and active transport connections mean we can potentially create thousands more homes where they belong, and make better use of existing infrastructure,” Schrinner said.

“With more than 600 people choosing to move to Brisbane every week, sites like this help us meet demand while protecting the character of our suburbs.

“This is about choosing to go tall in the right places, rather than pushing sprawl further out.”

Schrinner said such developments revitalised underused land and eased pressure on outer-suburban roads and infrastructure.

But local Greens councillor Trina Massey was less enthusiastic about the prospect.

“The lord mayor keeps describing every major site as a ‘rare opportunity’ for high-density housing, yet it is never affordable and there is never a plan to deliver the community facilities residents need – parks, schools, pools, and public transport,” she said.

“On land already vulnerable to flooding, the priority should be climate resilience and community infrastructure like parks and sporting fields, not just developer-led outcomes. This is another missed opportunity for South Brisbane.”

The Games Independent Infrastructure and Coordination Authority considered the Parmalat site as one of 12 possible locations for the planned Brisbane 2032 arena, before eventually settling on the GoPrint site at Woolloongabba.

The Parmalat site has long been central to plans to revitalise the Kurilpa peninsula. A little more than a decade ago, its then-chief executive, Rod Walden, said it would take four years and “hundreds of millions of dollars” to relocate the factory.

In October, plans for “South Bank 2.0″ at the Visy site – just down Montague Road from Parmalat – were scrapped in favour of high-density housing.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.