ABB Grain continues expansion with PCL purchase
ABB Grain, a leading Australian agribusiness, has completed their acquisition of the ruminant business of New Zealand’s PCL Feeds, a division of Mainland Poultry Ltd.
ABB Grain markets a wide range of cereal grains, oilseeds and pulses to customers in Australia and overseas, and last year embarked on a joint venture in Ukraine – signalling their expansion intentions.
From July 1 ABB Grain assumed full management of PCL’s New Plymouth mill on the north island, including production, procurement and administration and its NZ sales and marketing functions.
The latest acquisition is a further step in ABB’s growth strategy for New Zealand, which includes plans to build a new feed mill in South Auckland and establish substantial grain and feed protein storage facilities in two ports on the north island.
In April, ABB Grain purchased high-profile maize player, NZ Grain & Seed Ltd, also known as TAG, and they already have a significant presence in the country.
ABB Grain (NZ) Ltd’s general manager, Terry O’Connor, advised that ABB would be investing heavily in new sales and marketing strategies, following the acquisition. “We see a real upside in growth for the PCL range of products and we are very excited about its future in the New Zealand market,” he said. “The acquisition of PCL’s ruminant business forms part of ABB Grain’s New Zealand investment growth strategy. Soon, our purpose-built grain and protein store will be completed in New Plymouth.”
“We’re also well advanced in planning in order to build a further 30,000 tonne-capacity storage facility at Mount Maunganui besides a major new feed mill in South Auckland which will have an annual capacity of 150,000 tonnes,” Mr O’Connor added. “These facilities, plus that at New Plymouth, will be ideally placed to service the key dairy areas of Taranaki and the Waikato. The purchase of PCL Feeds’ ruminant business helps broaden our scope in supplying feed and proteins to a wide range of other stock.”
ABB is also set to benefit from the new Wheat Export Marketing Act (2008), which has stripped AWB of their monopoly on overseas shipments.