SYDNEY, June 5 (Xinhua) -- Food manufacturer Simplot Australia on Wednesday advised employees that two of its manufacturing plants are under threat of closure due to low-cost overseas competitors.
Unsatisfactory financial returns and unsustainably high costs associated with manufacturing in Australia have weakened the company's Australian operations, with the high Aussie dollar a final straw for the company's Bathurst, NSW and Devonport, Tasmania plants.
Meetings are currently being scheduled with local, state and federal government representatives and employees, unions, growers and suppliers to discuss opportunities for profit improvement.
Simplot Australia Managing Director Terry O'Brien said the announcement follows a six-month review of Simplot's supply chain operations in the vegetable category, seeking sustainable improvements to lift the plants' financial performance.
"The frozen and canned vegetable categories have been chronic profit under-performers for years, regardless of the value of the Australian dollar," O'Brien said.
"If insufficient opportunities are identified, we will be forced to close our Bathurst plant after the next corn season. Our Devonport plant will be required to produce a five year improvement plan with satisfactory outcomes or face the prospect of a longer term -- three to five year -- closure," he added.
Simplot Australia currently manufacture some of the country's most well-known brands, including Edgell, John West, Birds Eye, Leggo's, LeanCuisine and I&J, as well as the iconic Chiko Roll.
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