Australian dairy firm Murray Goulburn (MG) has announced plans to close manufacturing facilities in Edith Creek, Rochester, and Kiewa.

The company’s latest decision follows an asset and footprint review and is aimed to improve its cost base and increase earnings.

MG’s Edith Creek facility is planned to be closed by Q2, 2017, while the Rochester facility is expected to close by Q3, 2018. The Kiewa facility will be closed by the Q1, 2019.

Murray Goulburn's chief executive officer (CEO) Ari Mervis said: “At MG we are acutely aware of the impact that our decisions will have on our various stakeholders, including the communities in which we operate.

“We are committed to ensuring that we provide our affected employees with appropriate levels of support and the recognition that they deserve during this period of transition.

"At MG we are acutely aware of the impact that our decisions will have on our various stakeholders, including the communities in which we operate."

“MG will support employees by providing access to career transition and redeployment services, as well as working with federal and relevant state governments to leverage existing programmes.”

The closures will involve $60m of capital expenditure and are expected to affect nearly 360 employees.

Expected to begin in August this year, the company plans to fund the closures by maintenance capital expenditure that is no longer required at the manufacturing sites.

Upon completing the closures, the company expects an annual financial benefit between A$40m ($29.5m) and A$50m ($36.9m).