Building giant buys Moy Pkt quarry
BUILDING materials giant Boral Limited has signed off on an $81.5 million deal to buy the Moy Pkt quarry and cement its position in the Gympie and Sunshine Coast construction market.
Although still subject to approval by the Australian Competition and Consumer Commission, the deal shows confidence in the near-Gympie construction market, in defiance of slow times and gloom reported by many builders and contractors.
The purchase also seems likely to increase quarry output, much to the alarm of nearby residents.
The Moy Pkt operation, a source of almost constant complaint from residents forced to share narrow Mary Valley roads with quarry trucks, is a long-term resource which will enable Boral to replace its Coolum quarry, which is an estimated two years away from the end of its working life.
Added to the quarry’s existing markets, the extra heavy vehicle traffic is expected to quickly attract concern.
Boral chief Mark Selway said the acquisition, which also includes a Gympie concrete batching plant and a smaller quarry at Wondai, would “help secure the company’s position” locally and would add “high quality assets and market positions in attractive growth areas of Queensland”.
Sunshine Coast Quarries owner Paul McDonald, a Noosaville millionaire, has reportedly sold the quarry on a “cash free, debt free” basis.
Boral, which experienced share price improvement after the announcement, said in a presentation to investors that the advantages of the purchase included “improved market activity following severe wet weather and (the) rebuild after flooding, major road upgrading works on the Bruce Hwy over the next three to five years” and financial benefits from synergy with other Boral operations in the region.