The Victorian government has agreed to contribute $22 million towards a $100 million investment plan to shore up the future of SPC Ardmona by its parent Coca-Cola Amatil (CCA).
The total combined $100 million package will be invested over a three year period into efficiency measures and innovation at SPC Ardmona, the last remaining major fruit and vegetable processor in Australia.
The funding follows the federal government's recent refusal to bail out the struggling fruit processor with a $25 million cash injection.
SPC Ardmona managing director Peter Kelly said: “We are delighted with the support shown for our business case by Premier Napthine, Deputy Premier Peter Ryan and their government for the future of this important food industry. They have been unwavering in their determination to help the Goulburn Valley and have played a critical role in assisting us with our transformation plans for the business from a cannery to a modern food company.
“This $100 million capital investment package, while not the amount we originally planned, is significant and will be immediately put to work by our business to drive new product and packaging innovation and efficiency measures.”
He said while the new investment package will mean adjustments to the business plan, he paid tribute to what he said were unprecedented levels of support from the broad Australian community for SPC Ardmona and its brands, SPC, Ardmona, Goulburn Valley, Taylor’s, IXL and Henry Jones.
Under the terms of the funding, SPC Ardmona must continue to employ staff and if it ceases operations at Shepparton within five years of the agreement, it must refund the funding.
Gary Dawson, the CEO of the Australian Food and Grocery Council (AFCG), said the SPC Ardmona situation should also be a wakeup call to governments considering new regulatory cost imposts.
"These facilities are the last big fruit processing plants in Australia and an important part of our national industrial infrastructure and of our food supply infrastructure.
“From a broader industry perspective the challenge remains to get the settings right to kick-start the massive investment and re-investment needed if we are to capitalise on the unprecedented food export opportunities into Asia. The imperative is growth and the investment needed to drive productivity and competitiveness gains.
“Food processing can deliver jobs and growth – it should be an area of comparative advantage for Australia – however now is not the time to impose additional costs on industry. Any additional regulation that adds costs for business or consumers runs the risk of impeding vital investment and job creation," he said.
