July 9, 2007

ABB Australia to build wheat container export plant

Australia's ABB Grain Ltd. said it would construct a major grain processing facility in South Australia to take advantage of new regulations on releasing wheat exports in containers.

ABB said on Friday (July 6) it would initially invest more than A$6 million (US$5 million) in a container packaging facility to be built next to the company's grain terminal at Port Adelaide.

ABB managing director Michael Iwaniw said the company is also seeking for an increased demand of wheat exports following amendments for federal legislation.

The Australian government has de-regulated wheat exports in containers and bags in removing the monopoly of bulk exporter Australian Wheat Board Ltd. (AWB) following scandal over kickbacks to the former Iraqi regime of Saddam Hussein.

ABB said on Friday (July 6) it expected wheat export volume in containers could double containers to double in coming years following the change.

Aside from AWB, exports of wheat in containers by groups have amounted to just 3 to 5 percent,or almost 350,000 tonnes in 2005/06.

AWB subsidiary AWBI also exported 500,000 tonnes of wheat in containers in 2005/06.

The new wheat export regulations come into effect at the end of August.

ABB is also planning to develop a grain processing facility to clean and grade grain and a container handling yard to improve efficiency, Iwaniw said. (US$1=A$1.17)