Simplot crunches the numbers on its future

A decision by the American Simplot board on whether to pull out of Bathurst was originally set down for the end of August, but the uncertainty surrounding the forthcoming election has bought the plant a little more time. 

Dr Tenci said an internal improvement plan, which was well received by the board, is now “pretty much locked in”.

Now the plant is focusing on preparing its third party external plan where it will look at factors like suppliers, growers and customers, as well as support by various bodies such as Bathurst Regional Council, the state government, federal government and the unions.

The Simplot board met two weeks ago to discuss the future of the Simplot plants in Bathurst and Devonport. A decision is expected shortly. 

Dr Tenci said the real issue will be the savings generated, and how much they will be eroded by creeping costs in the future.

At the heart of these expenses are utilities such as power and water, as well as wages.

“I hope for the best, but we must be sustainable. The plant needs to stand on its own,” Dr Tenci said.

“It is a very good factory. We have spent an enormous amount on it – $28 million over the past eight years.

“The plant is current, our systems are current, we are not heavily burdened by labour, we are highly competitive, the site is in good condition, and we have excellent people working for us,” he said.

Dr Tenci said the iconic Chiko Roll is a great product, and one they are looking at exporting overseas, however corn production, which makes up a large part of their business, could be more competitive. 

There is a lot of corn coming out of Asia, which has a longer growing season and much lower labour costs.

Last week Labor promised the plant $3 million if re-elected.

The opposition has as yet made no promises of funding, but Member for Calare John Cobb is expected to visit the site tomorrow.