BB plans to strengthen agribusiness footprint in NSW ABB Grain Ltd

Document Sample
BB plans to strengthen agribusiness footprint in NSW ABB Grain Ltd Powered By Docstoc
					BB plans to strengthen agribusiness footprint in NSW

ABB Grain Ltd ("ABB") today announced plans to build a malting plant and grain containerisation facility in Sydney's
south west.

ABB has entered into an exclusive heads of agreement with the Macarthur Intermodal Shipping Terminal group
("MIST Group") to develop a site at the Minto industrial precinct, approximately 40 kilometres west of Botany Bay,
for purposes of building a malting plant and grain containerisation facility.

In addition, ABB will consider acquiring a stake in the MIST Group, which includes Independent Railways of
Australia Pty Ltd, and operates a road and rail intermodal terminal at an adjacent site.

ABB's managing director, Michael Iwaniw, said that signing the heads of agreement was an important step in
developing ABB’s value-added agricultural commodities presence on the eastern seaboard, particularly in New
South Wales.

The new malting plant is intended to have an annual capacity of approximately 110,000 tonnes, which will add to the
existing 500,000 tonne capacity of ABB’s wholly-owned malting subsidiary Joe White Maltings.

“ABB stands uniquely positioned to service the emerging demands of the Asian malt market,” Mr Iwaniw said. Our
malting division, Joe White Maltings, has an opportunity to leverage the growth potential in Asia and further cement
our company’s position as a reliable, low risk supplier of quality malt.

“With a projected increase of 8% in beer production, the appetite for malt will remain strong in Asia and adds
additional weight to our case for the Minto investment.”

“Minto’s location allows us to accumulate grain at an efficient site that is ideally located on the main Sydney-
Melbourne rail line, within close proximity to a major export outlet at Port Botany.

“With superior access to containers, development of this site will also allow Joe White to more strategically use
existing malt plants (including, for example Tamworth) to service the needs of existing customers.”

Mr Iwaniw said ABB had experienced a marked increase in its Prograin-badged container business, with a 40% rise
in container shipments in 2006/7 compared to 2005/2006, and continued growth this year.

“Container shipments are expected to continue to grow strongly, in particular due to customers’ demand for wheat in
containers,” he said. “There also is a surplus of containers on the east coast which is a further reason supporting the
Minto containerisation proposal.”

MIST managing director, Steve Heraghty, welcomed ABB’s announcement: “ABB’s operations will increase the
volume of containers by 50% into the MIST precinct.

“Combined with the existing container volumes, this will drive efficiencies for the site by balancing import and export
container flow.”

Finalisation of an agreement between ABB and the MIST Group is subject to due diligence and documentation, and
obtaining necessary approvals.

Further announcements will be made as the transaction proceeds.

 Posted on Friday, 29 February 2008

Shared By:
Description: BB plans to strengthen agribusiness footprint in NSW ABB Grain Ltd ...