The Tatura factory is currently a wet-food operation, making products like Continental sauces and Lipton's Ice Tea.

The expansion represents an investment of 8 million Australian dollars (Bt222 million) and the creation of 134 jobs over the next five years.

Last October, Unilever an-nounced the closure of its dry-food factory in Knoxfield, Melbourne, due to the need to remain competitive while generating sufficient funds to invest in the foods business. The Knoxfield factory manufactures products under the Continental label, such as Cup-a-Soup, Pasta & Sauce and Recipe Mixes.

At the time of the closure announcement, Unilever had identified two possible alternatives for dry-food production: its factories in Thailand and the Tatura operation.

The company's preference was to keep manufacturing within Australia, and over the past few months, Unilever has been working with the Victorian government to make this happen.

These talks have resulted in the government offering Unilever assistance in expanding the Tatura factory.

Vice president John Simpson said, "We are delighted that our dry-food operation will stay within Australia, and the move to Tatura will provide a welcome boost to the local economy and the wider Goulburn Valley region."

Unilever expects the transfer of production from Knoxfield to Tatura to start about mid-year and be completed early next year.