Unilever’s Glen Thoms explores the company’s recent investments in automation, renewable energy, and advanced manufacturing technology. Decision maker column Glen Thoms, head of Supply Chain, Unilever APAC & ANZ
I’ve seen a lot of change in my 25-year tenure at Unilever. I started my career at the company as an engineer and have since worked in roles across the end-to-end supply chain in ANZ and internationally. Automation has created huge efficiencies in the manufacturing and logistics sector in recent years. Automation, digitisation and use of AI is fuelling continuous change, along with the need to decarbonise manufacturing at pace.
Unilever is a supplier of beauty and wellbeing, personal care, home care, foods and ice cream products, with sales in more than 190 countries and products used by 3.4 billion people every day. Here in Australia, approximately 70 per cent of what we sell is manufactured locally in our three factories located in Tatura, Minto and North Rocks, and in collaboration with local contract manufacturers.
The Food and Grocery industry is the largest manufacturing sector in Australia, accounting for almost a third of all manufacturing and contributing $163 billion to the Australian economy. It supports more than 280,000 employees, with roughly 40 per cent located in rural and regional areas.
When companies like Unilever commit to manufacturing in Australia, their strategic investments and initiatives enhance production capabilities, support local economies, and promote sustainability.
Investment in technology to meet changing consumer needs
A strong manufacturing industry in Australia ensures Unilever can adapt to supply chain challenges and continue to provide popular laundry brands like Omo and Surf. We recently invested $9.5 million into our North Rocks facility. Packaging and processing machinery was installed, including cobots and laser-guided vehicles.
This facility is one of only three Unilever factories globally that produce laundry capsules, making it a critical hub for innovation and production. Laundry capsules are growing in popularity due to their convenience and effectiveness. They also use 80 per cent less water in production and are contained in biodegradable film.
Factory modernisation not only enhances production efficiency, but requires new skills, fostering a culture of excellence and continuous improvement. We’ve also made upgrades across our other sites to on shore production of Australian favourites. For example, we recently made investments in our Tatura factory in regional Victoria to produce retail sizes of Hellmann’s and Best Foods mayonnaise, which were previously imported.
Safety, efficiency and quality is paramount
Over the past couple of years, our ice cream factory at Minto, which makes iconic brands like Magnum, Golden Gaytime, Weis and Blue Ribbon, has undergone a multi-million-dollar upgrade, strengthening its capacity to continue producing Australia’s favourite ice creams locally.
The upgrades have helped improve safety, quality, efficiency, speed and the factory’s overall production output. It’s an example of Unilever’s ongoing commitment to invest in the latest technology and skills to meet the evolving needs of customers and consumers and drive sustainable business growth.
Australians rank as the third-largest consumers of ice cream globally, with New Zealand holding the top position. Operating in a market of discerning ice cream enthusiasts necessitates a commitment to product quality and consumer safety.
To ensure the highest standards of product quality, our Minto team does hourly checks on all parameters for all products. For example, Weis is made with fresh fruit, so every batch slightly varies in colour and flavour based upon the fruit season. To ensure consistency in quality, our team continuously tests to ensure all batches meet our high standards.
Our factories are enhancing productivity to deliver products faster and with the same unmissable quality consumer’s trust. The future of manufacturing will continue to evolve as new technology emerges. AI and predictive analytics will enable manufacturers to optimise operations, reduce downtime, and improve quality control. For example, one of Unilever’s facilities in Germany is piloting AI-enabled cameras to automate quality checks for Dove Beauty Bars, enabling faster inspections. It is only a matter of time before this type of technology becomes operational and is rolled out more widely.
Leading in Sustainability
We have an ambitious target to reduce absolute operational GHG emissions (Scope 1 & 2) by 100 per cent by 2030 from a 2015 baseline. All three of Unilever’s Australian factories have been powered by 100 per cent renewable electricity since 2020, achieving a 91 per cent reduction in Scope 1 & 2 emissions compared to 2015.
In order to reduce our emissions further, we need to transition to 100 per cent renewable heat. This means transitioning away from using gas in our factories and using renewable energy alternatives instead.
Our Tatura factory was the first of our Australian sites to have solar thermal technology installed. As a result, approximately 169 tonnes of CO2 emissions are now saved every year – around the same amount of energy used by a car driving around the earth 12 times. Tatura continues to investigate options for alternative generation of industrial process heat, such as electrical thermal energy storage.
Our manufacturing sites also have a zero waste to landfill policy. For example, at Minto, for any ice cream that we can’t sell (e.g. it has a defect), it’s either re-purposed as animal feed, or used for soil injection, which re-introduces nutrients back into soil in farming. To make this process more efficient, we’re currently trialling a “de-packaging machine” which separates the ice-cream from its sticks and wrapping. This is just one of the waste reduction projects at Minto, which have contributed to an overall waste reduction of 69 per cent compared to 2023.
The transition to sustainable operations is not without its challenges. As with all decisions relating to capital investment for the future – the business case and return on investment needs to stack up.
The cost of the energy transition when multiplied across all local manufacturers is high – often with long-dated returns. The recent government inquiry into food manufacturing in Australia made several recommendations to enhance the sector’s efficiency, sustainability, and innovation. Any opportunity to incentivise the adoption of renewable energy solutions, skills development, and circular economy principles across the industry is welcomed to support Australia’s sustainability efforts.
Logistics and warehousing are other important parts of the supply chain where decarbonisation is needed to meet national climate targets and reduce overall carbon footprint. Freight transport contributes significantly to Australia’s greenhouse gas emissions. It is estimated that road freight alone accounts for around 40 per cent of all transport emissions. We are working with our logistics partners on solutions to optimise our end-to-end supply chain.
These strategic initiatives illustrate Unilever’s vision of establishing a sustainable and resilient manufacturing ecosystem capable of adapting to evolving market demands and environmental challenges. Adaptation and investment in new technology, continued commitment to high levels of quality and safety, while transitioning to more sustainable operations will support ongoing success of manufacturing in this country. I am proud that our operations contribute to a robust FMCG manufacturing sector in Australia, delivering high-quality products while advocating for sustainable practices.