Harvey Industries Group has taken control of the state’s largest beef processor, Harvey Beef.
Harvey Industries Group has taken control of the state’s largest beef processor, Harvey Beef.
The $27.2 million acquisition was finalised earlier this week when HIG took ownership from administrator Ferrier Hodgson. This followed a vote by workers on the new, more flexible enterprise bargaining agreement.
The takeover had been stalled for three weeks to allow workers time to vote on the new EBA.
Harvey Beef chief executive, and former Skywest boss, Scott Henderson told WA Business News the short term plan would be to return the company to a position of sustainable profitability through a cost reduction program and by ramping up the revenue side of the business.
“We want to strengthen our relationship with cattle suppliers and improve our sales both in the domestic market and improve pour export capability internationally,” Mr Henderson said.
He said the abattoir would face an expected six-month shortage of cattle resulting in reduced production in the short term.
“The business is quite seasonal,” he said. “We are currently entering a period where supply is down, while prices are up.”
Mr Henderson told WA Business News a long term focus would be the upgrading of the plant, increasing the capacity of the business by 50 per cent.
He said on the domestic front, Harvey Beef would look to expand by re-opening a contract with Coles which EG Green previously held prior to collapsing into administration.
Internationally, the company is potentially looking at exporting to the United States, Japan, China, Korea and the Middle East.
The beef processor had been owned by the Green family for almost a century before going into administration on Friday August 19.
Offshore investment funds Stark Investments and Harmony Capital Partners own Harvey Industries Group which will trade as Harvey Beef.
Harmony and Stark made their first investment in WA in November last year, when each spent $5.1 million acquiring a 19.9 per cent holding in drilling contractor Brandrill. They acquired the shares from another international investment fund, London-based Mizuho International, which rescued Brandrill from administration in 2004.
