The future of SPC Ardmona in Shepparton has been secured with the Napthine government offering the company a $22 million lifeline as part of a $100 million investment with the company.
Up to 2700 jobs in the Goulburn Valley have been secured as a result of the co-investment.
Premier Denis Napthine on Thursday afternoon announced that the government had made a $22 million co-investment to secure the long term future of SPC Ardmona.
“This is a great co-investment in jobs,’’ Dr Napthine said.
“This co-investment will deliver a bright future for SPC Ardmona.’’
He said it was great news for jobs and the Goulburn Valley.
The decision, announced on Thursday, puts the Napthine government at odds with the Abbott government who rejected a plea from Coca-Cola Amatil, SPC Ardmona’s parent company, for $25 million.
Had the Federal Government offered the $25 million that was expected, the Napthine government would have matched the commitment.
When the Abbott government rejected SPC Ardmona’s bid it cited Coca-Cola Amtail’s healthy profits as a reason not to use government dollars to assist.
The $100 million will be used to upgrade facilities.
When Prime Minister Tony Abbott’s cabinet rejected the plea, there were fears the factory would shut causing thousands of job losses and crippling the Goulburn Valley fruit industry.
Dr Napthine said the Goulburn Valley had a very strong future with the Asian Century set to benefit food exporters.
Federal Treasurer Joe Hockey said the assistance was a matter for the Victorian government and would not comment further.
State Labor had pledged $30 million for the company if it won this November’s state election.
Under the Victorian government agreement, there must be a minimum of 500 staff employed by SPC Ardmona. If the company closes within 5 years it will have to repay the money.
The state government money has been raised from existing programs and will not affect the budget’s bottom line and it will delivered over three years.
SPC Ardmona managing director Peter Kelly said the company had worked hard to modernise. He said after the initial request the company went back to its books to work on a good outcome.
Mr Kelly also said the company had a great boost in sales in the past two weeks, which it hoped could be maintained.
“At the end of the day it’s the Australian consumers who actually decide,” Mr Kelly said.
Victorian Farmers Federation president Peter Tuohey, who has lobbied Premier Denis Napthine to assist the fruit and vegetable processor, said the announcement was “absolutely fantastic”.
Mr Tuohey said it was “critical” that the food processor remained operating in the Goulburn Valley, where it is a core part of the valley’s economy.
“It’s a really good outcome.” he said.
The decision would be a “huge relief” for the farmers who supply SPC Ardmona, he said.
“It will be a huge relief and a great boon for that area. Farmers, workers, all in that area will be extremely happy. It will be a huge weight off their shoulders. It’s very very good news,” he said
