South Brisbane Dairy Factory Closure Clears Way for Renewal
A prime inner-Brisbane site could soon be available for regeneration after French dairy giant Lactalis announced the closure of its South Brisbane factory.
Media has reported that workers at the Parmalat manufacturing facility had been told that the site was closing in July and being put up for sale.
Lactalis Australia, which became Australia’s largest dairy company last year after its $3.4-billion purchase of Fonterra, reportedly said that the ageing facility was no longer fit for purpose and that the suburb was transitioning away from industrial uses.
Lactalis Australia chief executive Mal Carseldine told media that the South Brisbane site had 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 of the dedication or performance of our people.”
Lactalis owns large tracts of the South Brisbane riverfront and parts of its holdings have been up for sale since 2024, including the Lactalis-owned site at 108 Montague Road, which is under contract, according to online listings.
Gregory Woods of Savills was appointed to manage the sale of the 1.697ha site, spanning 17 lots.
It has the potential for 189,000sq m of gross floor area, according to the listing.
At the time, Carseldine emphasised that the company’s presence at 65 Montague Road would be ongoing.
In the heart of Brisbane’s cultural precinct, Lactalis sites are near the Queensland Museum and South Bank, and opposite the planned Olympic International Broadcast Centre.
The wider area has been eyed for redevelopment for years as one of the last remaining city centre industrial areas.
The Brisbane City Council put the call out to developers last year to develop the 7.1ha South Brisbane site that was formerly home to recycling powerhouse Visy.
It also introduced a temporary local planning instrument in 2023 for Kurilpa, which paved the way for buildings as high as 90 storeys, and sits over many of Lactalis’s existing sites as well as strips in South Bank and lots in South Brisbane to Musgrave Park.
It led to developers launching major projects, including ICD Property’s six-tower riverfront masterplan, and Aria Property Group’s 50-storey tower approved last year.
