RIDLEY Corporation Limited is set to consolidate its Australian grinding operations on the continent with the planned sale of its Westbury pellet plant in Tasmania to Skretting Australia for $ 54.85 million.
Announced last month, it will give Norway-based global aquaculture feed company Skretting a second Australian aquaculture feed plant to supplement production at its Cambridge plant near Hobart.
Cereal plant understands that Skretting produces around 70,000 tonnes of aquaculture feed pellets per year in Cambridge, while the Westbury plant produces around 50,000 tonnes per year of aquaculture feed and other pellets.
The Westbury plant is located 20 kilometers west of Launceston and opened in 2019.
Last year, Danish company BioMar opened its only Australian plant in Wesley Vale, about 40 kilometers northwest of Westbury.
The BioMar plant, with a production capacity of approximately 110,000 t per year of aquaculture feed, and the Westbury plant produce pellets for a variety of aquatic species, including salmon.
In a statement, Ridley said the sale of the Westbury plant will allow the company to reset its manufacturing cost base to better serve the aquaculture feed market.
“The sale represents the divestiture of the underutilized Westbury extrusion facility, with Ridley pledging to continue to supply current and future customers through its expanded Narangba extrusion facility,” said the Managing Director and Chief from the management of Ridley. Quinton Hildebrand mentionned.
Mr Hildebrand said the major upgrade and expansion of its Narangba plant north of Brisbane is due to be completed next month.
“This will consolidate our aquaculture feed production into a single facility, providing a more competitive and lower cost supply chain to serve the Australian and New Zealand aquaculture industry, including our Tasmanian customers. “
In a statement accompanying Ridley’s 2020 annual report, the company said it purchased 50 hectares of land in Chanthaburi, Thailand, last year, and went from half to full ownership of the factory. nearby Pen Ngern aquaculture feed.
Ridley is Australia’s largest producer of shrimp feed and has also invested in aquaculture feed in China and Thailand.
Skretting has been manufacturing animal feed at its Cambridge factory since the 1990s and employs over 90 people.
“I am delighted that we are expanding our manufacturing capacity to allow us to continue our long-term commitment to our customers and partners across the Australian and New Zealand aquaculture industries,” said the Managing Director of Skretting Australia. Melissa Abbott mentionned.
Skretting is owned by the Dutch trading company SHV Holdings through its subsidiary Nutreco NV, a producer of animal feed, fish feed and processed meat products.
Chairman and CEO of Nutreco Rob koremans said Skretting Australia is an important part of world trade.
“This is a strategically important investment for us in a growing and leading industry, and we intend to continue to work in partnership with local leaders for many years to come,” said Mr. Koremans.
The Skretting website indicates that the Cambridge facility currently produces feed for: Atlantic salmon and chinook salmon; barramundi; yellowtail trevally; abalone; freshwater and saltwater shrimp and trout.
The sale of the Westbury facility by Ridley is subject to Australian Competition and Consumer Commission approval and is expected to close in the coming months.
Source: Ridley, Skretting