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Primo Smallgoods has been awarded a $1.17 million grant from the Clean Technology Food and Foundries Investment Program, funded from carbon price revenue.

Primo, which employs more than 4000 people nationally, will contribute an additional $2.54 million in funding towards the project.

Primo Smallgoods will replace and upgrade lighting, air-conditioning and water heating equipment at its four meat processing sites in New South Wales at Scone, Chullora, Greenacre and Prestons.

The upgrades will cut the company’s energy costs by $1.4 million per year and reduce energy emissions intensity across the four sites by 19 per cent.

"Through the Clean Technology Investment Programs, the Government is helping manufacturers and food producers - like Primo Smallgoods - transform their operations by investing in energy efficient equipment and processes," said Greg Combet, Minister for Industry and Innovation.

The grant was announced by Prime Minister Julia Gillard during her visit to Primo Smallgoods' facility in Wacol, Queensland.

During the visit, Prime Minister highlighted the opportunities available to Australian food processors, particularly in Asia, and explained how the Gillard Government will help food processors to access these opportunities.

Part of the Gillard Government's $1 billion Plan for Australian Jobs includes the creation of a food precinct to help food processors build the critical mass, business capability and export readiness needed to take advantage of industry growth opportunities.

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