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?

[katymatey*]

From what I understand the money goes back to the government if SPCA is not in operation in five years time. Or something like that, I have not read up on the subject yet.

[katymatey*]

With a bit of luck SPC will celebrate its centenary in three years time. One hundred years of feeding Australia and the world.

[boris1gary]

from Business Spectator

Coca-Cola Amatil Ltd and the Victorian Government have announced a new $100 million investment plan to assist the future of SPC Ardmona and the Goulburn Valley.

Under the plan Coca-Cola will invest $78 million into SPC Ardmona, while the Victorian Government will invest $22 million over three years.

The Victorian Government’s participation is conditional upon the entering into of formal legal documentation which will set out the investment milestones upon which the financial assistance will be provided.

Conditions of the agreement include employment being maintained at a minimum level of 500 Full Time Equivalent (FTE) employees for three years and the refund of all payments
made under the agreement should SPCA cease business operations at Shepparton within five years of the agreement with the Victorian Government…

The total combined $100 million package will be invested over a three year period into efficiency measures and innovation at SPC Ardmona, Coca-Cola said…

[cherry*135]

Under the agreement, SPC Ardmona has guaranteed full-time employment for at least 500 people at its facility.

The Government's contribution will be phased over three years, and will be attached to infrastructure investments.

If it ceases operating in Shepparton in the next five years, it will give the money back in its totality.

[the_hawk*]

finally someone has come to their senses and realised they need the people working to pay taxes, shame Tony worked that out yet

[icyfroth]

Here's something on the same topic I got in my inbox this morning:

Buy Birds Eye and Edgell

The only Australian manufacturer of frozen Australian vegetable (Simplot Australia) is not far from closing because a number of the other well-known Australian brands have moved their plants to New Zealand in order to capture the Chinese vegetable market, where they market via New Zealand to Australian tables (without the food being labelled specifically as Chinese) and Simplot is finding it hard to compete.

Should Simplot close, this means that no Australian grown frozen vegetable will be available at all and we will be relying on food grown totally outside of Australia. For a number of reasons this is not a good situation.

1. As most people know, other countries do not necessarily have the strict guidelines for growing their vegetables that Australia

has, and by buying Australian we can be sure that lethal chemicals that may be used in other countries will not be used on Australian vegetables.

2. We would be keeping Australians in jobs.

3. If the world ever became unstable regarding wartime we would not be able to feed ourselves.

It is imperative that we all support these Australian brands selling good Australian vegetables products (via Simplot).

Birdseye

Edgell

Next time you shop, please think about the future of Australian food.

Some of us love our designer labels. We buy premium brand shoes, premium brand clothing and well known premium perfumes and handbags.

Yet we buy the cheapest food we can for our children to eat. That doesn't make sense.

This is so true, the farmers in Tasmania are extremely worried about Simplots impending closure. They also have a lone plant in Bathurst (NSW) subject to the same uncertainty.

If these last remaining plants close, it means that China then has total control over our fresh/frozen vegetable industry.

Particularly disturbing to see that Chinese grown vegetables are coming in branded as a product of New Zealand.

no undersigned

[debra9275]

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

[freakiness]

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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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McCain had the McDonalds contract last I heard although they might have lost it again or not be exclusive any more.  

Simplot source potatoes from many areas in northern Tasmania. I'm fairly sure they do stll process potatoes in Tas.

They just got a contract to supply frozen vegies for Woolies or Coles labels although I'm not sure about the price squeeze the supermarkets put on them.

[debra9275]

Yes freaki, they did process the potatoes in Tassie as well. I do remember that when OH worked for them, they sold Herbert Adams, four,n,twenty pies and Nannas to Patties pies. Lots of people lost their jobs in those factories that were closed down but Simplot is a pretty good company to work for. Patties Pies is an Aussie company, in Bairnsdale I think, so it's good those brands are still here in Vic.

Simplot would have to be one of the largest manufacturing companies left here.