Scales expands into Auckland
Recently listed Scales Corporation is expanding in Auckland, where its Polarcold Stores operation has secured Fonterra as a customer for a new cold store.
The new facility will store about 20,000 pallets of goods, boosting Scales' total storage capacity by 16 per cent.
Fonterra will take 50 per cent of the space under a long-term agreement.
Polarcold had secured a long-term lease at Ports of Auckland's intermodal freight hub in Wiri, Scales said.
Agribusiness-based Scales has cool stores, pet-food manufacturing operations and orchards for the country's biggest apple-growing and exporting operation, Mr Apple.
Managing director Andy Borland said construction of the cold store was set to begin this year and operational in the third quarter of 2015.
Scales Corp's investment statement, issued before its recent initial public offering, forecast its storage and logistics division would contribute 36 per cent of the company's 2014 financial year earnings before interest, tax, depreciation and amortisation.
Scales shares were untraded this morning and last traded at $1.53.
"There is consistent and ongoing demand for domestic temperature-controlled storage," Borland said.
"New Zealand's perishable-food exports have increased by almost 65 per cent in volume terms since 1990, and our forecasts show this continuing into the future."
Scales Corp's Polarcold has facilities in Timaru, Christchurch and Dunedin, with a total temperature-controlled storage capacity of more than 265,500 cubic metres.
Associated company Whakatu Coldstores has 341,000cum of cold storage in Hastings, Napier, Kerepehi and Wellington.
Both companies are part of Scales Corporation's storage and logistics division, along with bulk liquid storage terminal operator Liqueo.