Cubbie Station owners buy another Queensland cotton plant

The purchasers of Cubbie Station have spent $20 million on a cotton ginnery in South Queensland.

The Chinese and Japanese group bought the Dirranbandi ginnery from Singaporean group Olam International, according to The Australian Financial Review.

CS Agriculture are backed by Shandong Ruyi and Australian wool trader Lempriere Group.

CS Agriculture say they do not plan to cut out local producers from sharing the ginnery’s capacity.

Olam obtained the ginnery as part of its 2007 purchase of the Queensland Cotton business for $166 million.

The CS Agriculture deal comes after discussions of a joint-venture between Olam and CS Agriculture stalled earlier this year. CS Agriculture obtained development approval to build its own ginnery at Cubbie Station before returning to negotiations.

Cotton gins separate cotton fibres from their seeds.

The purchase is part of the station’s vertical integrations strategy.

Cubbie station is Australia’s largest cotton farm which sold in October last year.

In April Qiu Yafu, who headed the Cubbie Station cotton acquisition, bought the Sydney waterfront property known as the Bang & Olufsen house for around $34 million.