Labor tries to save SPC, but not all factories

SPC Ardmona says it will close two of its three Goulburn Valley factories, even if it receives money from the Federal Government.

Labor has promised $25 million for the fruit canner if it wins the election.

SPC will close its Mooroopna and Kyabram manufacturing plants in the Goulburn Valley even if it gets promised Labor support if the party wins the federal election.

The funding would require a commitment from SPCA to stay in Australia, repayments to be made if it does close and no money to be used for redundancies or executive bonuses.

The company says a high Australian dollar and cheap imports forced it to cut half its grower contracts and halve the amount of fruit it takes from those remaining.

SPCA managing director Peter Kelly says factories at Mooroopna and Kyabram are still earmarked for closure.

"We've already told the staff the same thing.

"If we get the money for this big project, we'll be doing that.

"Sure, it will involve the staff taking a bit of a drive to come to Shepparton, but it's not that far.

"If it means working for a very very strong company with a strong future, who wouldn't do that, you know? It's crazy."

In a release, Labor says that 'without a serious upgrade to its operations, SPC Ardmona said it may be forced to close operations in mid 2014'.

Labor candidate for the safe Liberal seat of Murray, Rod Higgins, says the co-investment would also require money from the Victorian Government to help save the company.

"If the Victorian government says no - and I'd be surprised if they did - then we'd have to reassess where we're at.

"But we're determined and we're prepared to help SPC.

"We value the jobs of their workers and the state that the growers are in."

SPC Ardmona says if it gets $25 million from the Federal Government and $25 million from the Victorian Government, then parent company Coca-Cola Amatil will invest significantly more than that to modernise its Shepparton facility.

Source: ABC News, 2 September 2013