The global supply chain knots and high shipping and freight rates that resulted from the pandemic demonstrated just how disadvantageous it was to be over-reliant on imports, he said.
“For sure we are planning to expand our capacity that we have in Australia … that is certainly in the works,” he said.
“Our business in the past few years is growing faster than it has done in the previous years. So if that continues, we have to for sure repeat that $500 million in the next 10 years, potentially do more.”
Part of Prime Minister Anthony Albanese’s pitch to win government was a commitment to bring more manufacturing onshore.
“We need to make more things here in Australia, really, and have advanced manufacturing so that we can stand on our own two feet,” Albanese said on May 19. “That’s one of the lessons of the pandemic.”
Nasdaq-listed Mondelez International is also eager to prove its credentials as sustainable local manufacturer: as of this week, Cadbury Dairy Milk, Caramilk and Old Gold chocolate blocks will be wrapped in packaging made from 30 per cent recycled soft plastic. The move will divert 120 tonnes of plastic from going into landfill.
However, the recycled soft plastic must first be shipped from Europe as Australia lacks the facilities to recycle “inflexible” plastic, which uses a chemical process, unlike rigid plastic, which uses a mechanical process. Roughly 90 per cent of Australian soft plastics go into landfill.
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The initiative has been led by the confectionery giant’s Australia, New Zealand and Japan president, Darren O’Brien, who wants to demonstrate there is demand for local soft plastic recycling facilities by being a first mover.
“It sends a signal to the market that they should be investing in this capability, putting money into chemical recycling so that we can get an industry-wide solution,” said O’Brien.
“What we all want is not to need to call on virgin resources and materials, but to have a closed loop where you’re not getting any waste going to landfill.”
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