Mullen Group announced this week its board has approved its 2014 capital budget of $100 million, about $25 million of which will be allocated to its trucking/logistics segment.
The funds will be used to buy new trucks, trailers and specialized equipment to support Mullen's business units, the company announced. Additional funds could be made available for acquisitions, special projects and the purchase of land.
"We expect 2014 to be another good year for the Mullen Group, although growth will continue to be difficult to achieve given the current economic outlook as well as the near term prospects for the oil and gas sector in western Canada. However, looking to the future, growth opportunities are much brighter, which is the reasoning behind the board approving our request for a $100-million capital budget in 2014. Quite simply, we want to be prepared," said Murray Mullen, chairman and CEO.
The company expects to benefit from LNG exports through Canada's west coast, as well as crude oil pipeline and infrastructure projects.
Mullen added, "While 2% annual GDP economic growth is not in itself significant, we believe that there is a compounding affect to this growth that should ultimately benefit our trucking/logistics segment. There is also another important reason to continue investing in our 26 business units. Providing our employees with the newest equipment ensures that they have access to best-in-class assets and a quality work environment - prerequisites to retaining, as well as attracting, a productive workforce in this market. Our investment of $100 million in 2014 will ensure that our business units are well positioned for the future."
