Prime Minister Tony Abbott says he is delighted with the announcement that SPC Ardmona will continue without the need for federal assistance.
The company had sought a $25 million contribution from the federal government to improve its Victorian fruit processing plant and shift into new products, but its request was rejected.
The Victorian government on Thursday announced it would contribute $22 million to shore up jobs for at least five years.
"I'm delighted that we've seen some announcements from SPC Ardmona today and I want to thank all the people ... on this side of the house who have been wishing well this great institution," Mr Abbott said.
"We said SPC Ardmona had a good future and it does. We said that it didn't need $25 million from the commonwealth and it doesn't."
Labor used question time on Thursday to accuse the government of double-standards in granting $16 million to chocolate maker Cadbury but rejecting funds for SPC.
Mr Abbott says the Cadbury deal in Tasmania would go towards local tourism infrastructure.
"Why then did the prime minister's own press release announcing the deal state that ... a portion of the grant will go towards a trial to grow cocoa trees in northern Australia," opposition employment spokesman Brendan O'Connor told parliament.
But Mr Abbott did not budge.
"I stand by the answer I have given."
