SYDNEYGrainCorp Oils is investing AU$125 million($111 million) to secure the long-term viability of its integrated edible oils and spreads manufacturing operations in Australia. The project involves creating a strategic hub within Victoria, which is located close to oilseed growing regions.
It delivers a logical and more efficient focal point for the sourcing, crushing, refining and distribution of our locally produced edible oils and food ingredients," said Sam Tainsh, group general manager, GrainCorp Oils.
The consolidation of edible oils refining and packing operations involves the expansion of the GrainCorp Oilseeds operations in Numurkah to add vegetable oil processing capabilities. GrainCorp Foods West Footscray operations will be upgraded to deliver a world-class food processing plant with additional capability, including retail spreads, bakery fats and shortenings. GrainCorp Foods operations in Murarrie will be relocated to the larger locations, and the Murarrie site will slowly cease operations beginning in early 2016.
In December 2013, the Australian government rejected GrainCorp Limiteds takeover by Archer Daniels Midland Company (ADM). Under the failed agreement, GrainCorp shareholders would have received A$12.20 per share plus additional dividends from current and future earnings. The acquisition was valued at A$3.4 billion, which included ADM's existing ownership and net debt.