SOAP maker PZ Cussons is closing down its facility at Dandenong, throwing 92 staff out of a job.
Cussons, whose products include Imperial Soap and detergents Trix and Morning Fresh, said 81 people will go from Dandenong with another 11 from its Mulgrave headquarters.
From July, much of the manufacturing will shift from Dandenong to a plant interstate, with the remainder outside Australia.
Managing director Chris How said the decision to shut down the factory had been a difficult one.
”It is not a reflection of the effort or contribution of our employees, it is a decision that reflects the challenging economic and competitive environment,” he said.
”Our primary focus over the coming weeks and months will be to support our employees during this difficult time.”
In its interim half-year report of Cussons’ UK parent, chairman Richard Harvey said revenue in Australia had been lower because of the tough trading conditions.
It is expected that the final round of production at Dandenong will end on July 31.
