Mars invests US$73M in AI-enabled pet food expansion at Wodonga factory

AUSTRALIA – Snacking and pet food company, Mars Incorporated, is expanding its pet food manufacturing operations in Australia with a AUD112.5 million (US$72.7 million) investment in a new wet pouch facility at its Wodonga factory.

The new 7,800-square-metre facility, scheduled to open in June, will produce pouched cat food products for brands including Whiskas, Dine, Advance and Optimum, as well as new product ranges.

The expansion, first announced in 2023 and supported by the Victorian government, includes two advanced single-serve pouch production lines and is expected to create 60 new jobs.

Mars said the digitally enabled plant will strengthen sovereign manufacturing capability through high-tech, AI-supported systems designed to improve operational efficiency, production scheduling and waste reduction.

The investment comes as manufacturers continue facing sustained inflation across logistics and raw material supply chains. 

Mars estimates supply chain costs are rising by around 5%, with freight fuel surcharges remaining a major pressure point. 

Internal projections suggest inflationary pressures could reach 10% if diesel prices continue to rise.

Around AUD3 million (US$1.9 million) of the Wodonga investment is being directed toward 10 autonomous mobile robots.

They will transport materials across the plant and automate repetitive production tasks without significantly increasing labour requirements or factory floor space.

Mars said the project also forms part of a broader AUD200 million (US$129 million) investment programme across its Australian manufacturing network through 2027.

In addition to the new pouch facility, the Wodonga site will also house a AUD39.3 million (US$25.4 million) solar thermal plant announced in October 2024, partly funded through a AUD17.2 million (US$11.1 million) grant from the Australian Renewable Energy Agency.

The solar project supports Mars’ target of halving carbon emissions across its value chain by 2030. 

It aligns with the company’s global commitment to invest US$1 billion between 2023 and 2026 to accelerate progress toward net-zero emissions.

“We are proud of the role our Australian manufacturing sites play across our operations, and this investment strengthens that commitment for the long term,” said Melodie Nye.

“This latest investment demonstrates the belief of Mars in the future of Australian manufacturing and the positive impact it has on the communities where we operate.

When we invest locally, we create jobs, deepen capability and help regional economies thrive.”

Mars established its first pet food factory in Wodonga in 1967, and the site has remained central to its Australian manufacturing operations.

The company has invested more than AUD450 million (US$290 million) across its Australian facilities over the past five years, including a AUD6.5 million (US$4.2 million) expansion at its Asquith gum and mints factory and more than AUD80 million (US$51.7 million) at its Ballarat confectionery facility since 2021.

Mars currently employs around 2,400 people across seven factories and two corporate offices in Australia.

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World, and follow us on our WhatsApp channel for updates.