SPC Ardmona has expressed its disappointment after the government knocked back its request for a $25 million grant to help it modernise its processing operations and boost efficiency.
SPC Ardmona MD, Peter Kelly, said the decision came as a surprise and would be a shock to food manufacturers in Australia.
“This is an unexpected and extremely disappointing decision by the Coalition, particularly after the enormous support we have received for our business plans from the local community and beyond,” he said.
The company sought $25 million from the federal government, which the Victorian state government was expected to match. SPC Ardmona's parent, Coca-Cola Amatil, had also committed further investment of more than $90 million for “world-class technology for new product development and efficiency gains”.
The federal government decision means that a potential $25 million grant from the Victorian government, which was conditional on a positive decision, would no longer be forthcoming.
Prime Minister Tony Abbott and Federal Industry Minister Ian Macfarlane announced that the federal government had made the decision that it would not invest in SPC Ardmona despite support from the Industry Minister’s Advisory Panel for the business case made by SPC Ardmona.
The government argued that SPC Ardmona's parent, Coca-Cola Amatil, is a highly profitable company. However, SPC Ardmona says it is a victim of high levels of cheap imported product from overseas.
According to the local council in Shepparton, home to the SPC Ardmona cannery which employs 700 people, unemployment will rise to 11 per cent if the facility shuts down.
Coca-Cola Amatil said its investment plans for SPC Ardmona were dependent on the receipt of both federal and Victorian government grants.
“To build a sustainable and profitable business in Australia you need to innovate; to innovate you need to invest. Without investment some of Australia’s best loved packaged fruit and vegetables brands may disappear and consumers won’t have a choice to buy clean, green Australian packaged grown fruit at retailers,” said Kelly.
Kelly thanked retailers, particularly Woolworths, Coles, IGA and Aldi, which agreed to decrease volumes of imported product and stock Australian made and grown SPC Ardmona products instead.
He also said in light of this decision, SPC Ardmona would now review its business plans with parent company Coca-Cola Amatil.
SPC said the government's decision came as a surprise.
