SML - Synlait Milk Ltd

[Beagle]

some rolls royce de ja vu for you eh Beagle

Yeah that problem isn't going to be fully resolved anytime soon either. Always plenty of challenges in business, but I tell myself (glass half full) that good companies work around challenges and mitigate the effect of them and still make good results whereas bad companies just make excuses. Hopefully this and AIR are in the former category !

[minimoke]

Actually - this is very good news. This way it is not Synlait which needs to manage the contractor change (and carry any penalty), but Tetra Pak. They are big enough to weather these minor contractor issues in some small island in the South Pacific without problems;

Agre. Also good news that SML management ought not be distracted in tryng to find a new contractor. They can keep on focussing on core business.

(ALso top marks for market update - saves me an email tonight. Much better response than the M Bovis one. Good on them)

Happy Holder

[winner69]

One thing is that the new Pokeno plant will probably cost heaps more than planned.

[Joshuatree]

I dream of tetrapak being a listed company and that i bought early,

https://www.tetrapak.com/

[BlackPeter]

One thing is that the new Pokeno plant will probably cost heaps more than planned.

What makes you think that? It hasn't been flagged as one of Eberts "problem" projects.

[minimoke]

What makes you think that? It hasn't been flagged as one of Eberts "problem" projects.

Anyone care to point to a construction project that finished on time and on budget? (dontr get me started on the Christchurch Town Hall and our other local construction projects - metro centre didnt even get off the ground due to costing heaps more than planned)

[777]

https://www.stuff.co.nz/business/far...tory-completed

[Valiant]

What makes you think that? It hasn't been flagged as one of Eberts "problem" projects.

In the likely case that Tetra Pak need to find a new Contractor to undertake the design & build of the Pokeno site, you would expect that costs increase due to 'escalation' that is present in the market at the moment. Any costs associated with bringing in a new Contractor should sit with Tetra Pak and basedc on yesterdays SML announcement I believe that to be the case.

[winner69]

What makes you think that? It hasn't been flagged as one of Eberts "problem" projects.

Probably a new contractor .....and one who probably won’t operate on thin or non existent margins

Only 5% through the whole design and build process I heard ....maybe hadn’t even got to the pricing of the construction stage anyway

[forest]

Minimoke I believe that RYM, retirement villages are normally constructed with minimal delays or budget blowouts.