New plant for Kwinana site

A NEW $3 million fertiliser plant is being built in Kwinana by private company Valefox Pty Ltd.

The plant will be set on the 1.8163 hectare site at 6 Office Road which was once home to a local drive-in theatre.

Department of Land Admini-stration records show the company bought the site for $725,000 from TI Investments in July last year.

Plans of the plant revealed to Business News indicate a structure of 90 metres by 71 metres long and 22 metres high is to be built on the site.

For the past five years Valefox, operating under the name Super-cal, has used the facilities of the Summit Fertiliser plant and produced chiefly for Summit's needs.

The integrated soil ameliorant fertiliser plant will be capable of processing up to 300 tonnes per hour, with initial output targetted at 60,00 tonnes per annum.

Current prices for fertiliser range from $200 to $600 per tonne, suggesting the company could have initial revenue of anywhere between $12 million and $36 million a year.

Approval for the plant was given by the Kwinana Town Council in November last year.

A report to council by Kwinana planning officer Nikki Havelberg explained the facility.

Ms Havelberg wrote that the plant would have four storage silos where raw materials will be mixed and blended, a granulation plant and a two storey office complex.

“Raw materials will be collected from the Kwinana Bulk Cargo Jetty and unloaded into 40 tonne trucks,” Ms Havelberg said.

“Trucks will also be used to deliver finished product from the site directly to farmers.”

“The blended product will be transferred from the bulk storage silos directly into 40 tonne transport trucks and/or 1.5 tonne bulk bags within the building for dispatch to the customer.”

The plans showed seven or eight trucks were expected to enter the site transporting raw materials or leave with finished product daily.

The fertiliser market is currently dominated by Wesfarmers CSBP who produce about 700,000 of the 900,000 million tonnes to 1.5 million tonnes produced annually in WA.

Summit Fertiliser is the second largest producer, producing about 200,000 tonnes per year.

Australian Securities and Invest-ments Commission records list Perth accountant Richard Dickson from PKF Accountants (formerly Pannell Kerr Forster) as director of the company.

Business News had been unable to reach Mr Dickson for comment at the time of going to press.

The company is keeping a low profile on the operations and the structure of the organisation. The managing director of the company and, it is understood, the owner of Valefox, former South African Jadri Beyers said he was unable to disclose anything for at least five months as negotiations were still delicate.

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