AutoPak and Elders joint venture to build a new agrochemical plant with 200 t/a pesticides

AgCrest, a joint venture of AutoPak and Elders, has received approval to build a large-scale agrochemical production and distribution facility in Toowoomba. The facility will significantly increase domestic chemical production to secure supplies for the agricultural industry in Southern Queensland and Northern New South Wales and is expected to produce 200 tonnes of chemicals a year, including pesticides such as herbicides and fungicides.

An artistic rendering of the initial production facility AgCrest plans to build in Charlton, on the Brazilian borderThe facility is located on 7 hectares of land in the town of Charlton on the Brazilian side of Toowoon, close to the Warrego Road, Wellcamp Airport and the proposed Inland rail line, and is expected to use raw materials in production primarily from or through Brisbane.

 The initial investment for the facility is around $15-20 million, with an additional $10 million expected in 2026-2027 to complete the final phase of the project. The site will be constructed in four phases, starting with the initial production facility and warehouse; Phases 2A and 2B will expand production capacity, add warehousing and distribution facilities, and establish a laboratory; The final phase will also see the addition of a product display room, allowing retail customers to purchase products at lower than wholesale quantities.

 The proposal is highly dependent on the accessibility of regional and national road networks, with all raw materials to be transported to the site by road and, in the future, an inland railway. The proposal provides for the domestic production of agrochemicals and herbicides to ensure adequate supply of agricultural products, reduce dependence on imports and supply instability, ensure farmers' productivity and reduce input costs.

 AutoPak is a chemical producer based in St Mary's, northwest of Sydney, and a member of the Autopak-Vetlab Group of crop protection products companies. The General Manager of AutoPak advised that being closer to the end user would reduce transportation costs, which was an important consideration when transporting chemicals, and that Toowoomba's location, conducive to AutoPak serving its major customer base in the Darling Downs and Northern New South Wales, would be AutoPak's headquarters; Separately, Elders Limited, an ASX-listed company, currently owns 33 per cent of AgCrest.

 The plant was originally scheduled to begin production in the fourth quarter of 2023, but approval delays have pushed back the expected start date.