Significant pressure from the continued strengthening of the Australian dollar, and increasing competition has forced Coca-Cola Amatil to close one of its three food processing factories in Australia, resulting in 150 job cuts.

After a comprehensive review of its SPC Ardmona business, Coca-Cola Amatil ( CCA) will retain two of its three manufacturing facilities in the Goulburn Valley, the company said in a statement on Tuesday.

Production of SPC Ardmona’s premium packaged fruit and vegetable products will be consolidated at the Shepparton and the smaller Kyabram facility, while the Mooroopna manufacturing plant will close.

Terry Davis, CCA’s Group Managing Director, said that the review was undertaken in order to right-size the SPC Ardmona business, which has been under significant pressure from the high Australian dollar, and tougher competition from cheap imported products.

Mr Davis said, “The strengthening of the Australian dollar over the past three years has regrettably led to a significant increase in the volume of cheap packaged fruit and vegetable products being imported into Australia. It has also led to a material increase in the share of the private label category which is being supplied primarily by imported products. The stronger dollar has also negatively impacted the competitiveness of SPC Ardmona’s export business with exports halving over the past four years.”

The company said all affected employees, approximately 150 from across the SPC Ardmona business, will be offered alternative employment opportunities within CCA’s beverage business.

“We are also working with the Victorian Government to ensure all affected employees have the opportunity to retrain or build on their current skills through government subsidised training places,” Mr David said.

SPC Ardmona has recognised a charge of $80.5 million after tax as a significant item in the first half result for the write-down and write-off of excess inventory, the write-off of assets at the Mooroopna facility which are no longer required, as well as costs relating to the restructure. The write-down is largely non-cash.