Grains marketer Graincorp will cut 130 jobs and begin closing its Murarrie plant in Brisbane from 2016.

GrainCorp will slash 130 jobs and close its Murarrie plant in Brisbane as it shifts its food manufacturing operations to Victoria.

The grains marketer plans to inject $125 million into its edible oils manufacturing operations and relocate its food operations in Murarrie to Numurkah and West Footscray.

Edible oils include vegetable oils and feed supplements for livestock.

The Murarrie operations will progressively close and the company will shed jobs from early 2016.

“The priority for us is giving our people in Murarrie as much certainty and ability to plan ahead as possible,” general manager of Graincorp Oils Sam Tainsh said.

“That’s why we have informed our people over two years in advance.”

Where possible, the company will seek to redeploy affected staff to other parts of the business, he said.

Mr Tainsh said the $125 million investment was a vote of confidence in Australian food manufacturing at a time of uncertainty for many manufacturers in the country.

He added that 44 new roles would be generated at the expanded plants in Numurkah and West Footscray.

The consolidation of refining and packing operations in Graincorp’s edible oils business will expand the Numurkah plant’s capabilities to include vegetable oil processing capabilities.

The West Footscray operations will be upgraded to produce retail spreads, bakery fats and shortenings.

The company expects the move will ensure strong domestic demand for Australian canola and other oilseeds.

It will also mean refining and packing operations occur much closer to where canola is grown and crushed.

At 1448 AEDT Graincorp shares were one cent higher at $7.72.