It will also modernise the plant and the manufacturing equipment, which will streamline the manufacturing operations and improve efficiency.
SPC Ardmona expects the project to lower its annual fruit processing costs by A$12.4m ($12.28m), annual water use by 242 megalitres, and annual energy consumption by almost 55,000 gigajoules at the Goulburn Valley cannery.
A part of the funding will also be used to transform the company's site in Mooroopna into an innovation center for the development offood manufacturing technology, which is expected to create 45 new full-time jobs.
The government has offered a funding of A$4.4m ($4.35m) for the project.
Deputy Premier and Minister for Regional and Rural Development Peter Ryan said the investment would secure the jobs of 870 employees across the Goulburn Valley by improving its competitiveness and reducing its costs.
"The project will also secure the future of SPC Ardmona's 275 contract growers and suppliers of semi-processed fruit products such as fruit juice and pulp," Ryan added.
Project works are slated to start October 2012 and completed by March 2015.
SPC Ardmona, which is currently owned by Coca-Cola Amatil, purchases 150,000t of fruit valued at A$32m ($31.69m) annually from contract growers, and injects about A$63m ($62.39m) into the local economy.
The company is Australia's largest producer of packaged fruit and vegetable, with several manufacturing plants and a distribution centre covering the Victorian regions of Shepparton and the Goulburn Valley.
