DGL Group, a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste has acquired a multi-purpose North Queensland chemical facility in Townsville for $2.45 million.
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The facility, which DGL previously leased as a storage hub, will be turned into a chemicals formulation and storage facility, ensuring DGL can produce agriculture, mining and waste and water treatment chemicals for distribution across North Queensland.
DGL CEO Simon Henry said these products were previously transported from New South Wales and the new facility gave them formulation capability in all key industrial hubs across New Zealand and Australia.
"Being able to service large customers in the mining, agriculture and waste treatment sectors, from a local base, is a core component of our business model," Mr Henry said.
"Townsville is perfectly situated to service and owning the facility will reduce logistics cost, and ensure we are able to offer a competitive service for formulation, logistics and manufacturing services in Queensland.
"Our intention at DGL is to be the leading full-service chemicals company, which means full service in geographic spread. Owning our own sites allows us to grow our asset base and drive growth through organic opportunities, while investing in the long-term infrastructure needed to meet the growing capacity the industry requires."
The acquisition will require a capital investment of around $5 million to turn it into a processing facility, and once completed and fully operational, is expected to generate revenue across a number of manufacturing opportunities, including the manufacturing of aluminum chlorohydrate, shotcrete accelerator and liquid fertiliser blending, as well as toll manufacturing for one major customer. The facility will also be capable of storing 4000 metric tonnes.
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
