Woolworths reportedly considering early end to $70m SPC contract

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Supermarket chain Woolworths is reportedly considering the end of its contract with SPC Ardmona, two years into a five-year, $70 million contract.

The Herald Sun reports that the contract is under review, with unnamed industry sources suggesting Woolworths is looking to suppliers in China and India.

The deal with SPC in 2014 came when the processor’s Shepparton cannery – which supports 350 jobs directly and 650 indirectly in the Goulburn Valley – was under threat of closure.

The then-Coalition Victorian government announced a $22 million co-investment package at the time, with SPC’s parent company Coca-Cola Amatil investing $78 million of its own money to boost efficiency and innovation at the site.

The state government support could be in question, according to The Herald Sun, as this was conditional on 500 full-time jobs remaining over the five years.

“Woolworths needs to honour their contracts, everyone in this arrangement needs to honour their contracts,” opposition leader Matthew Guy told AAP this morning.