CBH Group to invest US$42 million in grain network

The CBH Group will invest A$65 million (US$42 million) in its grain handling and storage network, the company said Monday (Feb 23).

CBH increased its maintenance budget for 2009 to A$46 million, and will invest an additional A$19 million in major capital expenditure across the receival network to increase throughput and operating efficiencies at some sites.

The company's focus is to develop a flexible grain storage system that can adapt to varying seasons while still delivering an improved and efficient service, CBH Chairman Neil Wandel said.

The introduction of Grain Express and deregulation of the wheat industry has made the need for an efficient, quality storage and handling system more important, particularly during harvest, Wandel said.

Increased investment in the storage and handling network is made possible by the company's stronger financial performance in the 2007-08 financial year, Wandel said.

The CBH Group recorded a net profit before tax of A$57.3 million in 2007-08, up A$17.4 million from the previous year.