By Andy Young
Diageo Australia has unveiled a new high-tech warehouse alongside its primary manufacturing site in Huntingwood, Western Sydney.
The new facility has the capacity to hold 26,000 pallets, took 20 months to complete and saw a $21.5 million investment from Diageo.
In the long term, according to Diageo Australia's supply director Joe Russo, this significant investment will help the company to deliver considerable cost savings and also cements the company's commitment to manufacturing in Australia.
"Every year Diageo Australia produces close to 100 million litres of our world famous brands in Australia, where we've been manufacturing for 22 years this year," Russo said.
"While the tax environment in Australia sometimes makes it difficult to compete on a level playing field, we are committed to investing in our supply footprint for as long as it is sustainable to do so."
As well as cost savings the new warehouse will also help Diageo Australia reduce its carbon emissions by 110 metric tonnes per year.
Globally Diageo has targeted a reduction in greenhouse gas emissions from direct operations of 50 per cent and across its supply chain of 30 per cent, by 2020.
David Cutter, Diageo's global head of supply, said that the recently announced 2020 targets reflected the company's need to better manage water usage and carbon emissions.
Cutter said: "This forward thinking, holistic approach to sustainability means that we will work even harder with suppliers globally to decouple the growth of our business from our impact on the environment.
"The process efficiencies and reduction in carbon emissions achieved through this new site is one of many steps we are taking here in Australia to meet this ambitious global goal."