THE Chiko roll rolls on but more than 100 jobs will be lost at the NSW factory where the greasy treat is made.

Multinational vegetable producer Simplot has announced the downsizing of its plant near Bathurst to produce only the Chiko and canned and frozen corn.

The windback will come with a gradual loss of 110 of the plant's 170 permanent jobs.

The company, also behind brands like Edgell and Birds Eye, says its Tasmanian plant, in Devonport, has been given three years to become financially viable.

Simplot announced a review of both plants in June, warning they would need to show they could cut costs or face closure.

Managing director of Simplot Australia, Terry O'Brien, has reissued that warning.

"In the absence of a lower cost structure, neither plant has a strong business case long-term," Mr O'Brien said in a statement on Thursday.

Mr O'Brien said the Bathurst plant would stay open "until further notice" but remained in a precarious position.

"If costs escalate or other aspects do not prove financially viable, a total closure would then be necessary," he said.

In Tasmania, casual jobs among the company's 300 employees are expected to be lost as the plant is overhauled.

Its performance will be reassessed in three years and it will close over the following two years if it proves unviable.

"For Devonport to remain operational past the three-years mark it requires considerable capital investment and labour cost reduction", Mr O'Brien said.

He said looming enterprise agreement negotiations with unions would be crucial.

The company took aim at "stakeholders" it says it challenged to come up with financial support.

"The outcome of that challenge has been very disappointing," the statement said.

The previous federal Labor government promised $18 million to help the company during the election campaign, a promise which has not been matched by the coalition.

New employment minister Eric Abetz said industry minister Ian Macfarlane would meet with company representatives this week.

"The food manufacturing sector has been facing difficult times and Labor's carbon tax clearly made that situation more difficult," Tasmanian Senator Abetz said.

The Tasmanian government announced a $500,000 grant today.

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