Bega Cheese is closing its cheddar and mozzarella cheese manufacturing facility in Coburg with immediate effect, with redundancies to follow.

The dairy and spreads manufacturer did not say how many jobs at the Melbourne facility could go.

It said, while some staff will be offered employment at other Bega sites, there would be redundancies.

“The priority at this time is to support our employees,” the company said in a statement to the ASX on Wednesday.

The facility, located in Melbourne’s northern suburbs, was acquired by Bega in 2009.

It has since manufactured cheese for Bega’s private label and food service cheese business.

The company, which reports its first-half earnings on Thursday, said a review concluded the Coburg site’s capacity and city location could not viably support Bega’s expected future growth.

The company expects the facility to be worth less than its book value.

Bega said it will now source cheese from Bega’s other dairy sites and toll manufacturing arrangements.

Shares in the company were worth $4.82 before the market open on Wednesday.