Coca-Cola Amatil and the Victorian Government have announced a $100 million investment plan to help secure the future of food cannery SPC Ardmona and the Goulburn Valley.
According to a statement CCA will invest $78 million into SPC Ardmona, while the Victorian Government will invest $22 million over three years.
SPC Ardmona Managing Director Peter Kelly said while the $100 million capital investment package is not the amount they originally expected, it is a already a significant amount that will immediately be put to work to assist businesses in their product innovation and efficiency measures.
“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,” said Mr Kelly.
CCA said more than 2500 jobs are reliant on the ongoing operations of SPC Ardmona and today’s announcement is a vote of confidence in the region’s future economy.
Victorian Premier Denis Napthine said the investment will secure the jobs which are vital to the Goulburn region’s economy.
“It’s a great day for jobs, a great day for SPC Ardmona, a great day for Shepparton, the Goulburn Valley, and a great day for fruit growers and the future of the fruit industry in the Shepparton, Goulburn Valley and Victoria,” he said.
“The Victorian Government congratulates CCA on its investment and for working constructively to achieve a positive outcome for the company and the broader community.”
“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.”
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 and include the condition of employment being maintained at a minimum level of 500 Full Time Equivalent (FTE) employees for three years, and the $78 million contribution by CCA to the overall project cost. A further requirement will be the refund of all payments made under this agreement should SPCA cease business operations at Shepparton within five years of the agreement with the Victorian Government, according to the CCA media release.