Australian Vinyls to Acquire Improdex

17th September, 1998

Orica Limited today announced that Australian Vinyls Corporation had reached agreement to acquire the plastics compounding business of Improdex Pty Ltd.

Improdex, has operations in Melbourne and Sydney and manufactures PVC compounds and thermo plastic rubber for a variety of markets including packaging, footwear, pipe and wire/cable. It has sales of approximately $23 million and employs 65 people. The purchase price was not disclosed.

Australian Vinyls, a joint venture between Orica (63%) and Geon (37%) is Australasia's only manufacturer of polyvinyl chloride (PVC).

Orica managing director and chief executive officer, Philip Weickhardt said, "The Orica Board has been extremely pleased with the performance of Australian Vinyls since its formation last year. Our support for this investment demonstrates our commitment to maximising value for shareholders from all of our businesses, including those outside our nominated core platforms."

The acquisition is expected to be completed on 1 October 1998 subject to ACCC approval.