Kerry Group, the global food ingredients and consumer foods group, is boosting its presence in Australia through a major investment programme, as part of a planned major thrust into the Asia/Pacific region.
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Kerry, headquartered in Ireland, with operations across 15 countries, has expanded its Australasian operations ten fold since acquiring the Burns Philp ingredients business in 1998. The Group today flagged further acquisitions in the Asia Pacific region as a central platform of its global expansion strategy over the next five years.
At the official opening of the Group’s newly upgraded $20 million processing facility at Murarrie, Brisbane today, by Mr. Tom Barton, MP, Minister for State Development Queensland, Kerry’s Managing Director, Denis Brosnan said the Group was committed to significantly increasing its asset base in the Asia/Pacific region, including its $70 million investment in Australia.
Mr Brosnan said the $20 million expansion of the Brisbane facility, and a $10 million upgrade of Kerry Australia’s second major processing plant at Altona, Victoria, in addition to the completion of a new $6.5 million regional head office and R&D facility at Homebush Bay, Sydney, demonstrates the Group’s commitment to servicing the ingredients requirements of its food manufacturing and foodservice customers in Australia.
In addition Kerry has earmarked a further $20 million to be invested in its local capital equipment to provide for the introduction of other Group technologies to the Australian market.
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By GlobalDataMr Brosnan said that the Group’s Asia/Pacific operations had generated around 5% of the Group’s AU$4.6 billion turnover in the 2000 financial year. “Given that we currently sell around 9,000 product lines in over 80 countries, Kerry obviously has an underweighted presence in what is still one of the most dynamic regions in the global economy”.
“Our goal is to expand our ingredients business in this region to US$500 million by 2005 through acquisitions of established processors and the establishment of new greenfield facilities”.
“In addition to further strengthening our Australian operations, Kerry is focused on expanding its presence in Japan, Philippines, Thailand, India and in Malaysia where we have recently completed a major upgrade of our fourth Asia/Pacific processing plant located at Johor Bahru.”
Alex Awramenko, President of Kerry Australia, said that this major investment by the Group meant that its state-of-the-art Australian operations would continue to be an important part of the Group’s growth strategy, providing a gateway for expansion into nearby South East Asian and Pacific markets.
“Kerry Ingredients are the market leaders in Australia and New Zealand with current annualised sales from our Australian business in excess of $160 million. We are budgeting for further significant growth in 2001 and beyond, particularly in the value added poultry and food processing markets, as well as the quick-service restaurant and bakery sectors,” he said.
Kerry, whose locally produced ranges include marinades, flavouring bases, vinegar, dry ingredients, crumb and coatings, employs 450 people in Australia and 14,000 world-wide.
