TWO-TIME Warrnambool Cheese and Butter (WCB) managing director John McLean has stepped down from that position with previously nominated successor David Lord now assuming the chief executive role.
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But Mr McLean’s considerable experience will not be lost to the company with chairman Frank Davis confirming Mr McLean has been appointed to a new role as an associate director of Australia’s only listed dairy company.
Mr McLean was brought back from retirement in mid 2009 to again lead the company after the disaster that saw up to a third of WCB’s suppliers take their milk to other processors when WCB introduced a second cut to farm gate milk prices.
Former chairman David Karpin and managing director Neil Kearney and a number of non executive directors were replaced as a result of those developments.
Having stabilised that position and warded off hostile takeover bids from Murray Goulburn and a second suitor, believed to be Canadian dairy giant Saputo, Mr McLean advised the WCB Board of his resignation at its meeting on May 28.
Mr Lord takes over the leadership at a time when the company share register is in transit from its current restricted basis to the point in two years time when the register will be open to all with no limit on individual holdings.
At this stage individual shareholders are limited to a maximum 10pc of the total issued capital.
No stranger to corporate upheaval, Mr Lord headed the Parmalat operations in Australia through the dramatic collapse of its Italian parent which saw receivers appointed and its most senior managers jailed for their role in the undeclared losses amounting to billions of Euros.
Mr Lord begins his role as chief executive with a more positive outlook for the dairy industry both in Australia and in export markets which account for ra large part of WCB’s annual output.
But the takeover issue is not likely to go away in the foreseeable future with Murray Goulburn still looking to expand its operations and retaining the maximum allowed 10pc of WCB’s shares.
Saputo also made it clear to financial analysts last week that it still sees potential in an Australian acquisition, attracted by the ability to buy milk without the impost of government imposed pricing and to market Australian origin dairy products into major markets under bi-lateral trading agreements.
Mr Lord told Warrnambool Standard reporter Steve Hynes this week that the possibility of takeover interest was “something we know we will have to deal with from time to time."
He said he fully expects there would be ongoing interest in the company but for the moment their focus had to be on just running the business and not speculating about something that might happen in the future.
“If it does, we'll deal with it when the time comes," he said.
