Graincorp says it will invest $70 million on the construction of three liquid storage facilities to meet increasing demand for fuel and chemicals.
Graincorp will spend $70 million on building bulk liquid storage facilities at port terminals in NSW, Western Australia and Queensland.
The three facilities, in Port Kembla, Fremantle and Brisbane, will hold a combined 65,000 cubic metres of petroleum and chemicals to accommodate the increased demand since the company bought Gardner Smith in mid-2012.
“It’s one of the opportunities that’s presented itself following the purchase of that business,” GrainCorp spokesperson Angus Trigg said on Thursday.
“We see that there’s really good, firm demand in those areas and ongoing growth opportunities.”
The investment would contribute at least $8 million worth of underlying earnings by fiscal 2015/16, the company said.
The announcement comes after GrainCorp last week said it would slash 130 jobs and close its Murarrie plant in Brisbane as it shifts its food manufacturing operations to Victoria.
The grains marketer at the time said it planned to inject $125 million into its edible oils manufacturing operations and relocate its Murarrie food operations to Numurkah and West Footscray.