McCain Foods closes Tasmanian vegetable processing plant

McCain Foods Australia will close its vegetable processing plant in Smithton (Tasmania) after completion of the coming processing season.

Staff involved was informed earlier today. McCain Foods Managing Director Australia/New Zealand Steven Yung: "The decision to close the plant was made on the basis that the investment required to upgrade to modern standards is significant. This, along with rising input costs means the investment could not be economically justified."

The 115 workers who will lose their jobs will be offered redundancy packages and between six and 12 months' notice before they are required to leave the plant.

"The employees who are made redundant will be offered compensation packages and lengthy notice periods to give them ample time to find new jobs,"Mr Yung said.

Processing in the plant will finish around the end of April 2010, while packing will cease around October/November, 2010.

After the completion of packing, the region’s vegetable requirements will be serviced from Hastings.

The French Fry factory in Smithton will be unaffected by this decision.

David Llewellyn, Minister for Primary Industries and Water, in Tasmania today responded to the announcement of McCain Foods that it will close its vegetable processing plant in Smithton in November 2010.

“This is a devastating blow for the workers of McCain in Smithton and for the vegetable growers in the region,” Mr Llewellyn said.

“We will work with stakeholders to find alternatives that will maintain and grow this important Tasmanian food sector."   Interview of McCain Foods Managing Steven Yung with ABC News on the closure (MP3)