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GrainCorp Closing South Africa Oilseed Plant

GrainCorp is continuing to restructure its edible oils business and operations. Following an investment of $130 million to fund the upgrading of its crushing and processing facilities in Victoria and the closure of its refining and packaging plant in Brisbane, the group announced it is closing its Riverland Oilseeds canola plant in Millicent in South Australia effective the end of September, reports Farm Weekly.

The decision to close the facility was based on a comprehensive review of the group’s strategic options, which concluded that the plant’s smaller scale and less than efficient location called for its closure. Crop outlooks for a smaller canola crop in Eastern Australia did not play a role in the decision.

“While we are investing to grow our edible oils processing capabilities in Australia, we are also seeking to maximise [sic] our efficiency to keep Australian oils and meals competitive,” Doug Belavic, general manager of supply chain and operations told Farm Weekly.

The plant at Millicent along with GrainCorp’s Numurkah plant and a third plant located south of Perth were acquired for $372 million in 2012 from vegetable oil crusher, Gardner Smith, which was part of the $472 million deal involving the integration of Integro Foods acquired from Goodman Fielder.

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