UPDATE
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CADBURY'S owners have scrapped their application for a $16 million federal government grant.
The company's withdrawal pulls the pin on a major visitor centre upgrade at Cadbury's Tasmanian plant.
Mondelez Australia and New Zealand managing director Amanda Banfield said the company was unable to meet the government's criteria to unlock the grant.
The $16 million was dependent on a commitment to significantly expand export volumes at Cadbury's Claremont plant.
''While we continue on the journey to modernise Claremont into a globally cost competitive manufacturing site, we don't today have a clear export opportunity so it was not possible for us to satisfy this aspect of the business case,'' Ms Banfield said.
Ms Banfield said Cadbury's 600 existing Tasmanian staff would not be affected by the decision, but plans to create an extra 300 would not proceed.
MORE TO COME
EARLIER
SPECULATION is mounting that a $16 million federal government grant promised to Cadbury has been withdrawn.
Opposition Leader Bryan Green raised the grant in State Parliament this morning, pressing Premier Will Hodgman to confirm the grant would not be handed over.
Mr Hodgman would not rule out a withdrawal.
''I understand there is an announcement to be made by Cadbury later today,'' Mr Hodgman said.
''That is a matter between Cadbury and the federal government, and I'm not going to pre-empt any announcement that they may make.''
Cadbury and the federal government have both been contacted for comment.
The $16 million grant was promised to Cadbury ahead of the 2013 election, and was expected to to help upgrade tourism facilities at company's Claremont factory.
Prime Minister Tony Abbott told Federal Parliament last month the money would only be forthcoming if Cadbury's business case stacked up.
The money was slated towards a $66 million Cadbury redevelopment, aimed at increasing production and reintroducing factory tours, which have been stalled since 2008.
MORE TO COME