ERJ staff report (DS)
London -- Fenner PLC is to build a new 'greenfield' manufacturing plant for steel cord conveyor belts at Kwinana, south of Perth. This facility will be the first new conveyor belt plant built in Australia in over 60 years. Construction on a 4.6 ha site will begin in April 2008, with production expected to commence in the second quarter 2009. The company said it expects to spend around Aus$70 million (Euro 42 million) on the project.
Simultaneously, Fenner announced the acquisition of all the shares in Northern Belting Specialists Pty Ltd for approximately AUS$5million (Euro 3 million). Northern Belting, which is based in Whyalla, Australia, is a service business specialising in belt splicing, rubber lining works, mechanical and technical servicing and belting sales. The company was previously privately held.
The company is issuing more shares, to a value of around Euro 50 million, which will be used to reduce borrowing and to fund the new factory.
Fenner has made a series of acquisitions in the conveyor belting sector in recent months, and said it is "is in advanced stages of negotiation" with a number of "small or medium sized businesses which would be acquired wholly or substantially acquired for cash."
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Stock exchange announcement from Fenner