GrainCorp has confirmed industry rumours that it will be closing its wool trading operations, as well as its finance arm, as part of a company restructure aimed at focussing the business on its core grain services.
Graincorp managing director Mark Irwin says the company is renewing its focus on supply chain solutions, logistics and grain marketing.
"This is why we have taken the decision to close our AG Finance and wool trading desk operations," Mr Irwin said.
"While both businesses were profitable, they were not core business and we did not see opportunities to grow revenue significantly from either."
Mr Irwin made the announcement as part of a broader explanation of its overall restructure.
In late May the company announced the realignment of its five business units into three: Storage and Handling, Marketing, and Ports and New Business.
The first phase of implementing the new corporate structure will commence from the beginning of July, Mr Irwin said.
"Further to this, there will be some name changes to business units, and some lines of business will be rationalised, as we focus on our core business; supply chain solutions, logistics and grain marketing," he said.
"Our storage and handling business unit, managed by Kevin Lloyd, will be renamed GrainCorp Storage and Logistics.
"This change emphasises our focus on integrating upcountry grain accumulation sites with our road and rail logistics, to create efficient, site-to-site supply chain solutions for growers, our domestic customers and for grain exporters."
GrainCorp will also be phasing out the name AG Haul.
"The current road freight business will continue unchanged as a line of business within the GrainCorp Storage and Logistics business unit," Mr Irwin said.
"In May I announced that our AG Plus merchandise business would become part of the new GrainCorp Ports and New Business unit managed by Nigel Hart.
"This business unit also includes our 9 port terminals, Hunter Grain and Container Link."
The AG Plus name will be replaced by GrainCorp Merchandise to link the merchandise business more closely with the GrainCorp brand.
"Our third business unit, GrainCorp Marketing, managed by Sam Tainsh, will continue to trade Australia grains and oilseeds into the domestic and international markets, and we will continue to offer competitive, transparent grain pools to growers across Australia," Mr Irwin said.
"Following the removal of the wheat export monopoly, we will be increasing our wheat marketing resources, an exciting development for GrainCorp.
"A further addition to the GrainCorp Marketing business unit is the new rail freight desk.
"This is the first step toward the creation of a secondary market for grain freight and will allow us to trade rail freight capacity, in the process extracting greater efficiencies from the trains we have contracted with Pacific National."
The changes will be phased in over the next few months, with October being the target deadline for completion of its rebranding and business realignment.
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