Ridley Corporation’s wholly owned subsidiary Ridley Agriproducts has reached an agreement with Gibson’s Limited (trading as Skretting Australia) for the sale of its Westbury extrusion facility in Tasmania for $54.85 million.
Ridley Managing Director and CEO Quinton Hildebrand said the sale – subject to approval by the ACCC and provision of certain certificates in relation to the facility – would enable the company to reset its manufacturing cost base to better service the aquafeed market.
He said Ridley was committed to continue supplying current and future customers through its expanded Narangba extrusion facility.
“The significant upgrade and expansion of our Narangba, Queensland extrusion facility is due to complete in July 2021,” Mr Hildebrand continued.
“This will consolidate our aquaculture feed production into one facility, providing a more competitive and lower cost supply chain to service the Australian and New Zealand aquaculture industry, including our Tasmanian customers.”
According to Ridley’s statement, the sale is expected to conclude in the first half of FY22.
