Big cash from chips

From Page 15

Mr Price said taking a stake in ADDCO allowed Midway to participate in the logistics side of the industry and gave it some control of its supply chain.

“It gives us visibility on the harvest and haul and logistics. Currently we outsource all of that,” he said.

About 50 of its 130-strong workforce are employed in Geelong but Midway estimates it also creates jobs for up to 1000 contractors’ employees involved in establishment, maintenance, harvest, haulage and supporting services.

About 200 trucks a day deliver to its North Geelong site which is thought to be the most efficient woodchip export base in the country, following arrangements with GeelongPort to install a $28 million woodchip ship-loading system in 2010 and the deepening of the channel by the Victorian Regional Channels Authority in 2014 to allow bigger ships.

Midway processes three sources of wood fibre, sourced from plantations and natural forests, which are supplied to pulp and paper mills and for use in rayon, a manufactured fibre used to make clothing.

A ship carrying about 50,000 green metric tonnes of woodchips takes about three days to load at the port’s Corio North Quay which adjoins Midway’s 19ha site.

Midway has a market capitalisation of about $240 million, up almost 30 per cent on its valuation when the company gained a listing in December 2016.

Following the release of its yearly result, shares in Midway Limited closed last Friday at $3.05.