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McCain Foods to undertake $10m potato processing plant upgrade in Australia

FBR Staff Writer Published 09 July 2015

McCain Foods is planning to invest $10m in the expansion of its Smithton potato processing plant in Tasmania, Australia.

McCain Foods

Work under the expansion includes the installation of a new $1.6m packing line at the facility, which produces french fries and other potato products.

Of the total investment, around $7.9m will be invested to modernize the on-site storage facility over two years.

Upon completion of the upgradation, the storage facility will be capable of holding up to 55,000 tons of potatoes for processing.

McCain Foods Australia/New Zealand agriculture director John Jackson said: "While this added investment will increase the plant's capability and efficiencies, we still have a number of challenges before us in maintaining the competitiveness of the plant to ensure its long term survival.

"One of the challenges, in such a competitive market, is maintaining and increasing efficiencies to drive cost-reduction. Even in Northern Tasmania, we have to realize that we are competing in a global commodities market."

Image: The Smithton facility produces french fries and other potato products. Photo: courtesy of KEKO64 / FreeDigitalPhotos.net.