Simplot Australia and McCain are both investing in chip plant upgrades in Tasmania
Two frozen food rivals are both expanding their plants in Tasmania as the state pulls in what is thought to be a record potato harvest.
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FROZEN food rivals Simplot Australia and McCain are both expanding their plants at different ends of the North-West Coast as Tasmania pulls in what is thought to be a record potato harvest.
Nationals Senator Steve Martin announced on Sunday Simplot Australia had secured a $12 million grant to help it complete a $51.3 million expansion at Ulverstone.
The company asked for a $15 million grant last year as it looked to boost production and secure jobs in Tasmania.
The investment will see larger storage and refrigeration facilities built to hold the more than 300,000 tonnes of Tasmanian potatoes it turns into chips, fries for McDonalds and other frozen products.
Construction is expected to begin in August.
The plant currently employs 320 people and 165 farmers supply it with fresh produce.
Senator Martin said construction would see another 117 jobs on site.
“Agriculture is a huge part of the Tassie economy, but farming is not enough,” Mr Martin said.
“We need companies like Simplot which value add and create more local jobs and more income for regional Tasmania.”
The Simplot site was developed in 1942 as a rabbit skin factory. It then became a fishery. In 1995 J.R. Simplot company purchased the site and began trading as Simplot Australia.
Rival McCain is also expanding its potato processing plant at Smithton.
The company has employed 17 extra people and will spend nearly $40 million upgrading its plant to become the company’s main French-fry production facility in Australia and New Zealand.
The upgrade, starting next month and due for completion by January, will generate around 60 construction jobs and $15 million in local trade and labour contracts.
It’s the first major investment in the plant since it was built in the late 1980s.
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