UP to 60 new jobs will be created in Colac after meat processor Australian Lamb Company Group (ALC) signed a 10-year contract with Coles supermarkets.
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The deal announced on Thursday is seen as a major boost to the south-west with lambs to be sourced from across the region.
An investment of $30 million in facilities will also ensure production capacity is increased to supply Coles throughout eastern Australia, while also assisting ALC in expanding its export customer base.
ALC expects to employ up to 60 new people in the area.
The partnership was announced in Colac by ALC managing director John Verrall and Coles merchandise director Richard Pearson.
Under the contract, which takes effect in November, ALC will process 1.1 million lambs for Coles each year.
ALC, which is owned by founders John Verrall and Denis Zarpellon, has been operating in the lamb and mutton processing and export sector for more than 20 years and currently exports to more than 69 countries worldwide.
Mr Verrall said the new contract was a significant milestone for both the business and the community in which it is based.
“We are one of the largest employers in the Colac Otway Shire and over the life of the contract we expect to contribute around $300 million of wages and purchasing to the local economy of Colac and surrounding districts,” Mr Verrall said.
“The 10-year Coles contract is a very significant partnership – it will deliver a level of certainty and security for our business and provide a solid platform for Australian Lamb Company Group in new and existing markets.
“The Coles contract provides a strong degree of certainty for our workforce, reducing the seasonal nature of the business with guaranteed processing numbers for 12 months of the year.
“This is of particular benefit in winter when ALC’s own export numbers may be reduced and Coles processing numbers remain steady.
“We anticipate our workforce to increase by more than 60 people, which will bring our workforce to approximately 600 people which is a great boost to the local community.”
Mr Pearson said the long-term contract was testament to the confidence that Coles had in the Colac business.
“We are pleased that this 10-year partnership will enable ALC to further invest in its business and support the local economy at Colac,” he said.