Infrastructure for malting company facility at Forrestfield to be fast-tracked

11/10/96

The State Government will fast-track infrastructure development at a new Forrestfield industrial estate to enable one of Australia's biggest malting companies to establish a $34 million malting facility there.

The new Joe White Maltings Limited malthouse will be built on Westrail land at Forrestfield and will provide a major economic boost to business.

Commerce and Trade Minister Hendy Cowan said the new plant, which would replace an existing facility in Northbridge, would boost value-added exports, provide a market for barley farmers and lift demand for local goods and services during construction.

Under an agreement reached with the company, the Department of Commerce and Trade would provide funding of approximately $2.9 million to establish essential infrastructure for the proposed new Forrestfield Industrial Estate, a redevelopment of Westrail's marshalling yard complex. It was proposed that part of the Forrestfield development would be an agri-business park.

"Without the support to fast-track the infrastructure required by Joe White Maltings Limited, the facility could well have been built in Victoria," Mr Cowan said.

"The infrastructure support package will allow Joe White Maltings to establish the malthouse next to the proposed new Co-operative Bulk Handling grain terminal at Forrestfield.

"The company will play a lead role in the development of the new industrial park by being one of the first key tenants. The early attraction of a significant tenant is an important factor in the success of such a development.

"Importantly, the establishment of Joe White Maltings and CBH at Forrestfield will bring infrastructure capable of being used by subsequent tenants."

Mr Cowan said that when the new malthouse came on line, the company would purchase around 100,000 tonnes of malting barley per year from WA farmers, with an estimated value of about $25 million. The company planned eventually to double the capacity of the plant.

The presence of an international maltster using new processing technologies would promote development of new barley varieties which would keep WA barley at the forefront of the world's malting barley markets.

The malthouse was likely to be completed by the end of 1997 and to employ 13 people. Most of the malt would be produced for export, leading to export growth of more than $20 million per year.

Mr Cowan said the package, which covered the cost of headworks charges, did not involve a direct cash payment to the company.

"Normally, industrial land is sold on a serviced basis, with servicing the responsibility of the developer," he said.

"In this case, both CBH and Joe White Maltings need the land before the subdivision can be developed. CBH needs to be operational by September 1997."

The funding will allow contributory support of $680,000 to supply power to Joe White Maltings Limited, CBH and future developments.

The plant will be a major user of water. There is currently no water supply to the planned industrial estate. The Government will provide funds for installing the permanent water, estimated at $205,000.

With waste water, the Government will fund the cost of a sewer line to connect the proposed estate to the Maida Vale Main Sewer. Joe White Maltings is evaluating recycling options as well as alternative uses for the treated waste water, such as irrigating nearby lands.

Access will be provided to the Maida Vale sewer for the maltster, CBH and the future subdivision, at a cost of about $2 million.

Joe White Maltings is one of the major malt manufacturing companies in Australia, with manufacturing capacity in excess of 250,000 tonnes per year. It is Australia's largest malt exporter, shipping to Asia and South America.

The company's Northbridge plant is approaching the end of its operational life and is likely to be closed at some time after the new facility is commissioned. The site will eventually be available for inner urban renewal.

The new plant will be highly automated and designed to reflect 'world best practice' and have an operational life of more than 50 years.

Mr Cowan said full details of the assistance package would be tabled in State Parliament.

Media contact: Peter Jackson 222 9595