V&V Walsh is pushing ahead with its Bunbury abattoir expansion, despite the project cost blowing out to $42 million amid pressure in the state's construction market.
Premium beef wholesaler V&V Walsh is pushing ahead with its Bunbury abattoir expansion, despite the project cost blowing out to $42 million as a result of the overheated construction market.
In November, the company lodged a development application seeking approval to build a new $36 million cold store warehouse for freezing, storing and preparing meat products for export.
The key driver for the project was the need for the company to conform to strict export license requirements, under which all processing must take place on the premises.
The development, earmarked for a 3.9 hectare site bounded by South Western Highway and the Preston River, was to be built alongside the existing abattoir and included the construction of a second access road.
During a meeting of the Regional Joint Development Assessment Panel this morning, V&V Walsh representatives revealed recent escalations in the construction sector, including rising materials costs, meant the actual cost of the project was now anticipated to reach $42 million.
The new cost constitutes a 16 per cent increase on that previously anticipated.
The panel unanimously approved the proposal, as had been recommended by the City of Bunbury.
V&V Walsh, one of the country’s largest meat exporters, was the first company internationally to be granted a license to export chilled lamb and beef to China and employs more than 550 people.
The construction of the facility is expected to create up to 130 direct construction, engineering and trades jobs over an 18-month period.
The cost blow out comes just four months after plans to build Australia’s largest marine observatory in Busselton hit a hurdle after the project came in more than 50 per cent over budget.
Non-for-profit Busselton Jetty Inc confirmed the estimated $32 million cost of the Australian Underwater Discovery Centre and Food and Beverage Village it had planned was now expected to cost close to $50 million.
The hike was the result of cost increases for contractor Subcon Blue Solutions, which had encountered a 63 per cent increase in steel, concrete and materials, a 280 per cent increase in shipping costs and a 40 per cent increase in labour costs.
