DGL expands Bohle site

Chemical transformation for sizeable storage facility

A SPECIALIST chemicals business is expanding into North Queensland after buying a site for a multipurpose processing and storage facility in the Bohle for $2.45m.

DGL Group at one time leased the property as a storage hub but will now expand it into a chemicals formulation and storage facility to produce agricultural, mining, waste and water treatment chemicals for distribution to customers across North Queensland. The expansion will create about 20 jobs.

Its products were previously formulated in NSW and transported to North Queensland.

Founder and chief executive of DGL, Simon Henry, said the purchase meant the business now has formulation capability in all key industrial hubs across New Zealand and Australia.

“Being able to service large customers in the mining, agriculture and waste treatment sectors from a local base is a core component of our business model,” Mr Henry said.

“Townsville is perfectly situated to service the Queensland mining industry and the Sunshine State’s extensive agriculture operations.

“Owning the facility will reduce logistics cost, and ensure we are able to offer a competitive service for formulation, logistics and manufacturing services in Queensland.

“Our intention at DGL is to be the leading full-service chemicals company, which means full service in geographic spread.

“Owning our own sites allows us to grow our asset base and drive growth through organic opportunities, while investing in the long-term infrastructure needed to meet the growing capacity the industry requires.”

The acquisition will require a capital investment of around $5m to turn the property into a processing facility.

Once fully operational, it is expected to generate revenue across a number of manufacturing opportunities, including the manufacturing of aluminum chlorohydrate, shotcrete accelerator and liquid fertiliser blending, as well as toll manufacturing or processing for one major customer.

The facility will also be capable of storing about 4000 metric tonnes, which will generate revenue for DGL through warehousing and distributing opportunities.

Colliers Townsville sold the property, which had been vacant for some time.

The site, at 124-134 Enterprise Rd, has a building area of about 3050 sqm and a land area of 7503 sqm.

DGL will transform it into a multipurpose chemical facility suitable.

Mr Henry said the installation of tanks, mixers and mills did not require heavy construction, meaning basic production could begin in about six months.

He expected to be employing about 20 people at the site by next year.