C.B.H., AWB Ltd. form alliance
May 01, 2000
by Emily Wilson
MELBOURNE, AUSTRALIA — Co-operative Bulk Handling Limited (C.B.H.) and AWB Limited recently announced a formal, long-term alliance between the two organizations to benefit the Western Australian grains industry and grower-owners of both companies.
By vertically integrating operations and eliminating duplicated services, the alliance will maximize the efficiency of acquisition, reception, transport, storage, marketing, trading and financial services of grain, said Allan Watson, C.B.H. chairman.
"This alliance dramatically increases Western Australia grain grower control over their industry," he added. The alliance will streamline grain industry operations, improve services and provide financial savings and higher shareholder returns, he said.
Trevor Flügge, chairman of AWB Ltd., said the combined expertise and resources of the two companies would strengthen Australia's position in international grain markets.
AWB Ltd. trades, sells and finances more than 85% of Australia's wheat while C.B.H. receives, stores and handles more than one third of Australia's average grain production and 95% of crop in Western Australia, the majority of which is marketed overseas.