OKOTOKS, Alta. — Mullen Group is allotting about $25 million in capital towards purchases for its truckling/logistics segment, to be used “primarily” to replace trucks and trailers.
In its 2012 capital expenditure plan, Mullen said it would be buying about 60 trucks and 200 trailers this year. It will also be adding to its “pipeline on wheels” by adding equipment to its fluid hauling fleet.
Mullen Group said in a release it is confident about 2012, so much so it is increasing its overall capital spending to $100 million, not including any acquisitions.
“This decision reflects not only our confidence in the long-term prospects for the markets Mullen Group serves but also in our 27 independently operated business units. We want to ensure that our employees continue to have access to the best and most efficient equipment and have best in-class facilities in which to work, as these are integral components of our quality initiatives,” said Murray K. Mullen, chairman and CEO.
The company also plans to invest in facilities, including the development of an industrial park in northeast Edmonton, which will facilitate the multimodal movement of industrial and energy-related products.
“Mullen Group believes it is a competitive advantage to own facilities in key strategic areas so when attractive opportunities arise they will be pursued. The commencement of the development of a transload and distribution centre in northeast Edmonton is an initiative that we believe will result in further opportunities to serve the Alberta market and thereby expand our presence in this growing market,” said Stephen H. Lockwood, president and co-CEO.
Mullen also said it would be looking for acquisitions in the oilfield services as well as the trucking/logistics segment.
“There are significant issues and challenges that continue to dominate the headlines, events well beyond our control. Here at the Mullen Group we are taking an optimistic view that 2012 will be another great year for our organization and we intend on taking full advantage of the opportunities,” Mullen said.
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