A $13million canola crushing plant proposed for Albany [A/Min]

May 14, 1998

A $13 million canola oil crushing plant proposed for Albany heralds the start of a major new export industry for Western Australia, according to Acting Commerce and Trade Minister Monty House.

Mr House said the canola plant would bring more than 30 new jobs and other potential benefits to Albany, including construction, supply and transport contracts for local firms and increased port activity.

He said the plant would be commissioned by Singapore-based Asia Pacific Bulk Terminal Holdings (APBT) and would have a crushing capacity of 250,000 tonnes of canola seed per year, worth more than $100 million.

"Ninety per cent of this is destined for Asian markets, including Singapore, Taiwan and China," Mr House said.

"The Western Australian Government, through the Department of Commerce and Trade and the Great Southern Development Commission (GSDC), has worked with APBT for more than four years to attract this project."

Mr House also paid tribute to the role Albany itself had played in attracting the project.

"It is apparent that local agencies, such as the Albany Economic Development Unit of the Town and Shire of Albany, Agriculture Western Australia and the Albany Port Authority, worked closely with the GSDC in supporting the Commission's feasibility study, promoting the opportunity in Singapore and providing a site at the port.

"This will be a major boost to local processing of the State's canola crop and will bring considerable benefits to farmers by reducing their market risks."

Chief Executive Officer of Asia Pacific Bulk Terminal Holdings, Mr Stewart Soon, said: "APBT is very pleased to announce this facility, because of the impressive growth in the Western Australian canola industry and the excellent site at the port of Albany, close to the producing area.

"Production of premium grade canola oil is expected to start in December 1998 with about 150,000 tonnes of canola seed to be crushed in the first year, producing around 60,000 tonnes of oil."

Mr Soon said the company had submitted a planning approval request to the Albany Town Council.

"The final decision to go ahead depends on planning approvals and current applications before the Department of Commerce and Trade," Mr Soon said.

Canola production in WA is soaring. In 1996 output reached 100,000 tonnes and surged forward last year to 240,000 tonnes. The estimated harvest for 1998 is 440,000 tonnes.

At present, most of the State's canola output is exported as bulk seed and oil is crushed only on a relatively small scale to supply the home market.

A by-product of the oil processing operation, canola meal, which is used as animal feed, will be marketed as exports to Asia where demand for protein is expected to increase.

APBT is finalising co-operative arrangements with Co-operative Bulk Handling and the Grain Pool of WA in connection with this project.

APBT is a Singapore-based joint venture between Vredelco Food Industries Pte Ltd and Regional Investment Company Ltd.

Vredelco manufactures and distributes oil and fat products in a variety of pack sizes for domestic, commercial and industrial customers in more than 40 countries. It is a significant supplier of edible oil and pack products to Australia and the South Pacific.

Regional Investment Company Ltd is a venture fund substantially subscribed by the Economic Development Board of Singapore. The fund is managed by Transpac Capital Pte Ltd.

Media Enquiries: Julie Cole (Minister's office) 9481 2044

Peter Cook (GSDC) 08-9841-4088