The Smith’s Snackfood Company’s Canning Vale, Western Australian potato processing factory is slated for closure in mid to late 2016. The decision is the result of an Australia-wide manufacturing operations review. The move comes as parent company PepsiCo Inc looks to make $5 billion in productivity savings over five years to 2019.
The Smith’s Snackfood Company supplies highly recognised snack brands such as Doritos, Smith’s Chips, Red Rock Deli, Bluebird Chips and Twisties to supermarkets and convenience stores throughout Australia. Its South Australia and Queensland plants will not be impacted by the restructure, and it is unlikely that the closure will affect supply of the popular brands.
However, WA potato growers, who supply 12,000 tonnes of potatoes worth around $5 million a year to the factory, see the closure as a significant loss to their industry.
“Following a strategic review of its manufacturing operations across Australia, The Smith’s Snackfood Company has announced its intention to close its manufacturing facility at Canning Vale in Western Australia,” the company said.
“The Smith’s Snackfood Company is one of a handful of companies that continues to manufacture the majority of its products locally in Australia, and to use Australian raw materials like potatoes and corn. The company is committed to Australian production and will invest in upgrading its manufacturing capability at its other plants within Australia to cover production requirements. Current contractual agreements with our local agricultural suppliers will remain unaffected.
“This difficult decision was made with careful consideration, and The Smith’s Snackfood Company will provide outplacement services and redundancy support to affected employees.”
At PepsiCo Inc’s third quarter 2015 results, chairman and CEO Indra Nooyi said that productivity continues to simultaneously fund investments in the business and contribute to margin enhancement.
while smiths might be one of a few who still manufacture here, with local product, the Parent company is American, so IT is closing the factory, with all the associated hardships for the growers , workers and suppliers in western Australia….south Australia and queensland will keep their factories, and all those potatoes from western Australia will be tipped into the ocean——-fair play???? hardly…