Work is about to start on a $63 million oilseed crushing and refining plant in Wagga that will create 65 new permanent jobs, 200 construction jobs and up to 500 indirect jobs.
Managing director of Riverina Oils & Bio Energy (ROBE) Pty Ltd, a company backed by a consortium of Indian investors, Dhruv Deepak Saxena said the Wagga plant, which should be operational by October 2010, will crush 170,000 tonnes of oilseed a year, producing animal meal and refined edible oil.
Mr Saxena said that along with the new jobs and $20 million to be spent with suppliers from Wagga and the Riverina area during the 14-month construction phase, the plant will create new crop and export opportunities for Australian farmers.
He said he proposed to crush canola, safflower, cottonseed, soybean and sunflower seeds at the plant and would buy up to $60 million a year of raw material from farmers.
“Most importantly for Wagga, it will create new skills for the city’s workforce and introduce new technology and new markets to the Australian agribusiness scene.
“Wagga can become the production hub of a new export initiative,” Mr Saxena said.
ROBE plans to export some of its 65,000 tonnes a year of refined vegetable oil to food industry customers in India, Japan, other Asian countries, Europe and the United States.
It will also produce 105,000 tonnes a year of vegetable protein meal for use in the Australian poultry, dairy and animal feed industry.
The project is the biggest Indian-backed greenfield investment in eastern Australia, according to Mr Saxena.
“India is the world’s largest importer of edible oil.
“That makes the Indian connectivity of this project hugely important, both in terms of the investment and the export market.
“There have been larger investments in Australia by Indian companies, but they primarily have been acquisitions of existing businesses. This is the biggest value-added greenfield project to date on the eastern seaboard, and shows how serious our commitment is to Australia,” Mr Saxena said.
Mr Saxena said at full capacity, the plant would generate annual revenue of $150 million, with the value of edible oil exports to India and other parts of Asia likely to reach a total of $100 million in the first five years.
Long-term, the plant will also produce up to 75 million litres of biodiesel, converted either from refined oil or imported palm oil.
As well the company is keen to explore the possible use of residues from Riverina vineyards and citrus orchards or Queensland sugar cane, to generate power.
Mr Saxena said the project would deliver significant benefits to the city of Wagga and Australian farmers, creating 65 direct jobs in phase one in the factory, administration, quality control, maintenance, sourcing, sales and export, 200 construction jobs and up to 500 indirect jobs in the transport and associated logistics sectors.
Almost 15,000 truckloads or rail container movements a year would be needed to carry 350,000 tonnes of raw materials and finished products.
Mr Saxena said the Riverina would also benefit from an initial $20 million of capital purchases and project spending on items such as building, electrical equipment, utilities and services.
“Once the plant is up and running, we expect to spend more than $60 million a year buying raw materials and other products from the Riverina region,” Mr Saxena said.
He envisages farmers in the Riverina will plant an extra 75,000 hectares of crops to deliver 100,000 tonnes of oilseed to the crushing plant.
Another 50,000 hectares will be planted in other parts of Australia.
“Safflower oilseed will give farmers an option to plant up to August on a fixed price contract. It’s a product which is both water-efficient and good for crop rotation.
“Soybean will replace imports and
give farmers a summer crop,” Mr Saxena said.
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