UK group Fenner plc has announced plans to invest $70 million establishing a factory at Kwinana to manufacture steel reinforced conveyor belts.
UK group Fenner plc has announced plans to invest $70 million establishing a factory at Kwinana to manufacture steel reinforced conveyor belts.
The investment will be through its Australian division Fenner Dunlop and will be the first new conveyor belt plant built in Australia in over 60 years
Construction on a 4.6 hectare site will begin in April 2008, with production expected to commence in the second quarter 2009.
Fenner's global CEO Mark Abrahams said "this initiative will further cement our position in the minds of our customer as the world leading conveyor belt company".
"Australia is the ideal country for this development due to its central location to growth markets in China, India and Africa," Mr Abrahams said.
"Australia itself is also an important market and our Australian team headed by David Landgren has proven know how and expertise to ensure they build the best conveyor belts anywhere in the world".
Australian and America's Executive Director David Landgren said "the growing global and local market for steel cord has been a major driver for this investment. Additionally it is expected that due to the expertise required to make such an important belt for our customers, these kinds of belt must be made using a highly skilled and qualified team, just like those in Australia".
"Our safety standard as well as our adherence to quality processes means using expert workers in industrialized countries is the best way to guarantee we meet the growing service and performance expectations".
Mr Landgren said the investment would include "the most modern equipped technical testing facility in the Southern Hemisphere".
The plant will produce steel cord belt and rubber ply belt up to 3200 mm wide and up to 50 mm thickness. The plant will have an initial annual production capacity of 330,000 square meters, equating to about 103 km of 3200 mm belt.
Fenner Dunlop will install German and Italian technology in the plant.
The new Australian plant will become Fenner Dunlop's fifteenth global conveyor belt manufacturing facility, and its
fourth Steel Cord plant.
Industry and Enterprise Minister Francis Logan welcomed the decision, saying the plant would be the largest and most technically advanced of its kind in the world and would create at least 150 new jobs.
The Minister congratulated the Department of Industry and Resources for facilitating and attracting the project to WA, to the benefit of the local resources and industrial sectors.
A spokesman for the minister said the government had not provided any incentives.
