Newlcast owner Esco has bought its Dunedin property as part
of an overall upgrading of the foundry, which it purchased
in late 2010. Photo by Gerard O'Brien.
Dunedin foundry Newlcast, owned by Oregon-based United
States company Esco, has bought its Thomas Burns St site in
Dunedin for $1 million.
It is understood the land purchase completes a recent
redevelopment phase for the foundry, including the
installation of upgraded equipment and building
modifications, possibly worth several million dollars.
However, Esco is in the process of registering for an initial
public offering and is in a regulatory "quiet period" banning
news announcements. The company declined to comment.
The Dunedin property is one of two formerly leased sites
which have been sold to their respective Chinese and American
owners in Otago and Canterbury for about $1 million apiece,
after decisions were released by the Overseas Investment
Office (OIO).
In Canterbury, Chinese-owned Synlait milk was similarly
granted consent by the OIO to buy the freehold site of its
milk processing facility for $1.1 million.
Consent for the Dunedin purchase was granted in late December
for the 0.84ha property which had been leased from Farra
Engineering since 2007, Farra having sold the foundry to
Brisbane-based AustCast which then sold it to Esco in
December 2010.
Esco, which employs about 4700 people globally, is a
worldwide supplier of parts to the mining and construction
industry, including crushers, blocks, tooth systems, dragline
buckets and truck bodies, and in late December 2010 bought
the shares of privately owned AustCast in Brisbane, which
included the Dunedin subsidiary Newlcast.
In July 2010, Esco bought Swift Group in Brisbane, including
several manufacturing facilities.
Synlait, which is majority-owned by Bright Dairy, of China,
has leased the 48.5ha of land at Dunsandel from Synlait Farms
Ltd.
Obtaining long-term control of the land would give Synlait a
solid base and secure position on which to continue building
its business to a level that would be of substantial benefit
to Canterbury and New Zealand, the December decision summary
said.
The company, which started processing milk in 2008, added a
$100 million infant nutritional formula facility to its site
last year, targeting the growing Chinese market.
- simon.hartley@odt.co.nz
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