Bathurst MP Paul Toole said the NSW Office of Trade and Investment would be working with the company to try and stave off the pending closure.

Mr Toole said he had met with executives from Simplot in recent weeks to discuss the situation.

"An announcement like this does come as a shock to the community," he said. "I know Simplot has issues in relation to its operating costs and profitability and is looking to address these problems.

"NSW Trade and Investment is now looking at ways they can help make savings where possible.

"We're talking about initiatives like energy reduction programs and savings in relation to water usage."

Mr Toole said the high cost of the Australian dollar, cheap imports, ever increasing manufacturing costs due to high wages and more and more overseas competition, made it hard for an operation like Simplot Bathurst to remain competitive.

"Unfortunately, in recent times we've seen large companies like Ford make a decision to move offshore to remain viable," he said. 

"Simplot is no different, but few people in Bathurst could have predicted they would be under the financial pressure they apparently are."

Mr Toole said the NSW Government would do all it could to help, but also noted Simplot was a private business and one they could not bankroll.

"The company has meetings scheduled with local, state and federal government representatives, employees, unions, suppliers and growers to discuss profit improvement opportunities and hopefully these will be productive," he said.