July 8, 2008

ABB Grain buys New Zealand feed company

Australian grain trader ABB Grain acquired stock feeds manufacturer PCL Feeds Ltd in New Zealand for an undisclosed sum.

In April, ABB already purchased New Zealand corn company NZ Grain & Seed.

"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,'' ABB said.

ABB Grain (NZ) Ltd general manager Terry O'Connor said he the purchase of PCL Feeds' ruminant business helps broaden the company's scope in supplying feed and proteins to a wide range of other stock.

ABB was already considering investments in Australia in November last year, when it announced an 89-percent drop in earnings in 2007. The company also announced last year it was partnering with PCL Feeds to build a AUS$30 million plant in South Auckland. Profits for the first half year of 2008 rebounded to AUS 33.6 million, an 80-percent increase over the same period last year.