INTERNATIONAL vegetable processor McCain Foods has announced it will carry out a $10 million upgrade over its Tasmanian factory, at Smithton, Circular Head.
Onsite storage facilities and a new packing line will be upgraded and built over the next two years.
McCain Foods will spend an estimated $7.9 million on the on-site storage over two years and $1.6 million on the new packing line.
The improved storage facility will hold up to 55,000 tonnes of potato for processing.
McCain director John Jackson said the investment would increase efficiencies and make the plant more sustainable.
“While this added investment will increase the plant’s capability and efficiencies, we still have a number of challenges before us in maintaining the competitiveness of the plant to ensure its long term survival,” he said.
“One of the challenges in such a competitive market is maintaining and increasing efficiencies to drive cost-reduction. Even in Northern Tasmania, the company was competing in a global commodities market.
“In addition, rising local water and energy costs impact on the plant’s cost base reducing its overall profitability against global competitors.”
The Smithton plant processes potatoes for French Fries and potato products for local and interstate markets.
