Almost 200 permanent and casual jobs will be lost at Smithton in Tasmania’s north-west next year, when McCain Foods closes its vegetable processing plant.
The company says ageing infrastructure and rising costs mean the 60-year-old frozen vegetable factory is no longer financially viable.
About 115 permanent employees will be offered redundancy packages and given between six and 12 months’ notice before they are sacked. About 75 casuals are also affected. Vegetable processing will end in April next year, but packaging will continue until November.
McCain’s Managing Director, Steve Yung, says the workers have done an outstanding job, and the decision is not a reflection on them. He added that the company was aware of the impact the decision would have on its workers and would do what it could to assist them.
The closure of the vegetable factory is expected to have a massive impact on the local economy. Adding to the bad news for locals is that McCain is opting to use its plant at Hastings in New Zealand to source and process its vegetables. Despite this, McCain says its potato chip factory at Smithton will stay open.
Source: ABC