Victorian Coalition Government makes $22 million co-investment in SPC

[icyfroth]

Thursday, 13 February 2014

SPC Ardmona’s long-term future in Shepparton has been secured with a $100 million Victorian Coalition Government and Coca-Cola Amatil (CCA) co-investment.

Premier Denis Napthine, together with Deputy Premier and Minister for Regional and Rural Development Peter Ryan, today announced the Victorian Coalition Government had committed $22 million towards a $100 million co-investment in the Shepparton company.

“Up to 2,700 jobs in the Goulburn Valley depend on SPC Ardmona and this co-investment secures these jobs which are vital to this region’s economy,” Dr Napthine said.

“This strategic co-investment has been made after careful financial assessments to secure the long-term future of SPC Ardmona and grow its export opportunities, particularly in Asian markets.

“With this support, SPC Ardmona will transform its operations, modernise food processing and increase its global and domestic product range.

“Importantly this $22 million commitment from the Victorian Coalition Government has been sourced from existing programs through Regional Development Victoria and the Department of State Development Business and Innovation.

“This co-investment aligns with the government’s work to create export opportunities for business in growing markets and to support regional communities.

“The Victorian Government congratulates CCA on its investment and for working constructively to achieve a positive outcome for the company and the broader community.”

Deputy Premier Peter Ryan said today’s announcement was another example of the Victorian Coalition Government supporting business to grow and thrive in the domestic and international market.

“We recognise the significance of the state’s food and fibre industry, with total agriculture and food exports from Victoria accounting for 29 per cent of Australian food exports,” Mr Ryan said.

“Food and fibre is particularly important to the Shepparton region, which has more than 3,000 agricultural businesses.”

Link To Article

I wonder what co-investment means. Does it mean that the government will have certain share of the profits? What will the investment consist of? Factory and system upgrades? What if it's still not viable? Does that mean the government will have lost it's $22mil?

[cherry*135]

Its a weird world we live in. Quite a few years ago a lot of  NZ companies were overtaken or merged with Aust & international ones and shut down in NZ, - tomato growing and processing was one.. moved to Australia.

Now they are going in reverse.. shutting down in Aust and moving to NZ.. because the cost of doing business in NZ is cheaper than in Aust.

[icyfroth]

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@debra9275 wrote:
My OH used to work for Simplot Icy. the company is owned by JR Simplot from Idaho USA.

They used to source their potatoes from growers in Tassie, Launceston I think it was. Simplot supplies McDonalds French fries. Anyway last I heard was that the potato operation moved to NZ. Not sure what happened to the Tassie growers

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OMG, Deb, Really?

Still and all, just like with CCA owned SPC, we should be buying brands which employ Australians and use Australian produce.

I don't buy frozen veges except for chips, and I usually buy McCains or Birdseye.

Will keep a closer eye on it in future.

[debra9275]

Icy Simplot are also Leggos. I can't remember what else but there are other brands too, OH got retrenched from there about 10 years ago when they sliced up middle management and did a restructure. They have a darn good IT dept, though lol.

[debra9275]

Freaki, they probably are still in Tassie, but have downsized.OH is away ATM, so I can't ask him.

[icyfroth]

I just googled them: http://www.simplot.com.au/about/introducing-simplot-australia/

They own quite a few brands besides Birdseye and Edgell, like Chiko, Seakist, Ally, Lean Cuisine, etc.

I hadn't realised the scope of how much Australian food production is under foreign ownership. Pretty much all of it, actually.

[debra9275]

Yep!

[freakiness]

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@icyfroth wrote:

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@debra9275 wrote:
My OH used to work for Simplot Icy. the company is owned by JR Simplot from Idaho USA.

They used to source their potatoes from growers in Tassie, Launceston I think it was. Simplot supplies McDonalds French fries. Anyway last I heard was that the potato operation moved to NZ. Not sure what happened to the Tassie growers

---

OMG, Deb, Really?

Still and all, just like with CCA owned SPC, we should be buying brands which employ Australians and use Australian produce.

I don't buy frozen veges except for chips, and I usually buy McCains or Birdseye.

Will keep a closer eye on it in future.

---

They're being very sneaky these days and importing a lot of frozen chips. A lot come from Netherlands.

Brussels Sprouts from Belgium. Other brassicas from SA.  Most frozen vegies were Australian grown 10 years ago.

The price has not decreased to reflect the supposedly cheaper prices paid for the product by the companies.

[freakiness]

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@debra9275 wrote:
Freaki, they probably are still in Tassie, but have downsized.OH is away ATM, so I can't ask him.

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They are still in Tassie and have been threatening to pull the pin recently.  Hence the news story about the supermarket contract.

[debra9275]

I could have it wrong he could've told me they were thinking of moving it all to NZ

Icy  although Simplot is an American company, they still employ a lot of Australians & they are a very good company to work for

[freakiness]

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@debra9275 wrote:

I could have it wrong he could've told me they were thinking of moving it all to NZ

Icy  although Simplot is an American company, they still employ a lot of Australians & they are a very good company to work for

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Some of the potato processing might have gone to NZ but they do still have a vege and a french fry pocessing factory in Tassie.  One in Devonport and the other in Ulverstone. They shut one down in Scotsdale about 10 years ago.