Snopak Manufacturing’s plant at Thurgoona will close next month, resulting in 20 workers losing their jobs.

Employees were given the news on Tuesday with the national human resources manager for Snopak’s parent firm Pact Group, Maria Steel, coming from Melbourne for the announcement.

Ms Steel confirmed the move to The Border Mail on Wednesday but declined to say why the factory in the Hoffman Road industrial estate is closing.

Snopak had made two and three-litre plastic bottles for dairy company Murray Goulburn before milk production ended at Kiewa last year.

Thurgoona site manager Peter Goddard had told The Border Mail last May that he believed Snopak would be able to cover the loss of that deal without job cuts. 

In 2009 Pact bought the plant for $8.97 million from Finnish firm Huhtamaki.

At the time there were 40 employed at the plant with then site manager Garry Clancey saying Pact had plans to expand.

"Our business over the last few years has been under a lot of pressure," he said.

"Having growth in any business is  a good sign and if we've got potential for growth, then that gives us some  longevity.

"Everyone from myself to all my production staff are very excited about the prospects."

Dutch company Van Leer opened the factory in 1992 after being lured to the Border with $500,000 in government help.

The factory made packaging for McDonald’s, Woolworths, Bartters and Subway with the plant at one stage making 10 items a year for every person in Australia.

Australian Industry Group regional manager Tim Farrah said the closure was a blow, but it was in contrast to recent investment in Border factories by companies such as Mars Petcare, XLam and Seeley.

“It’s definitely against the trend, but it still hurts,” he said.

“Twenty jobs is 20 jobs, it’s 20 mortgages and we need to create 20 jobs to get back to square one.”

Meanwhile, the Australian Competition and Consumer Commission on Wednesday said it would not oppose the sale of Murray Goulburn to Canadian company Saputo.

The deal is still subject to Foreign Investment Review Board approval and a vote by Murray Goulburn shareholders but Saputo boss Lino Saputo said “we remain confident in our offer and expect to be able to finalise this transaction by 1 May 2018”.