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