Ridley Corporation Limited Announces New Tasmanian Feedmill
January 19, 2017 at 08:49 pm
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Ridley Corporation Limited announced its intention to build a new fit for purpose aqua feedmill in Tasmania. Located at Westbury, in northern Tasmania just west of Launceston and south of Burnie, the feedmill will manufacture and supply feed to primarily Tasmania's Salmon industry, as well as other aquaculture species on the mainland and in New Zealand. Based on committed volume from existing contracted customers, the proposed new feedmill will meet internal financial hurdle return rates, with upside in the form of spare capacity, which will be available to target new and returning customers and general industry growth. Currently, Ridley manufactures and supplies a significant volume of aqua feed to the Tasmanian market from its Narangba facility near Brisbane, Queensland. The new facility will bring Ridley closer to its Tasmanian customers, who will benefit from reduced supply chain costs, shorter delivery lead times and from being able to collaborate more closely on new product development and dietary enhancements. The transfer of salmon production from Narangba to Tasmania upon commissioning of the new feedmill will be accommodated within a restructure of the Narangba operations, which will include the return of production of certain third party manufactured products, which are currently outsourced due to capacity constraints. The Narangba restructure has been financially modeled in the internal project approval process.
Ridley Corporation Limited is an Australia-based provider of premium animal nutrition solutions. The Company operates through two segments: Packaged Feeds and Ingredients and Bulk Stockfeeds. The Packaged Feeds and Ingredients segment comprises animal nutrition feed and ingredient solutions delivered in packaged form, ranging from one ton down to three kilogram bags. It also includes the Aquafeed Business Unit. The Bulk Stockfeeds segment includes animal nutrition stockfeed solutions delivered in bulk. Its specialist areas include Aqua Feeds, Bulk Ruminant Stockfeeds, Bulk Monogastric Stockfeeds, Animal Proteins & Oils, Commodities, NovaqPro, and Primo Aquaculture. It manufactures and supplies a complete range of prawn/shrimp feeds and fish feeds for species, including Monodon, Vannamei, Banana, and Stylirostris prawns. It is also a provider of dairy feed, cattle feed, and sheep feed. It provides bulk stockfeed for monogastric animals, including layers, broilers, pigs, and ducks.