ICI Australia Approves $15.6 Million Explosives Investment in China

June 19th, 1997

The ICI Australia Board has approved a $A15.6m investment to establish a world-class explosives manufacturing plant in the Peoples' Republic of China. The plant, to comprise both packaged explosives and non-electric initiating systems, will be built on a greenfield site at Weihai in Shandong Province, North China.

ICI Australia Explosives' general manager Mr Alan King said the joint venture project was an exciting step for ICI Australia and formed part of its growth strategy in the Asia Pacific region.

"The project represents the culmination of three years work with the Chinese authorities to amend regulations to permit entry of foreign companies," said Mr King.

"The Chinese Government's invitation to establish a joint venture recognizes ICI Australia Explosives' reputation and its contribution to the mining industry.

"We already supply products to the World Bank-funded Yellow River Hydro scheme and Sino Mining's model gold mine in Shaanxi Province. The authorities are looking to our company to provide a model for the industry, from product quality and performance to safety and management systems."

ICI Australia's regional manager for Explosives in North Asia, Mr David Gibson, said the approval was timely. "Recent changes to mining laws have seen foreign mining companies from the Americas and Australia express increased interest in mining in China," he said. "ICI Australia wants to be in a position to offer those customers the same quality of product and service they receive elsewhere."

ICI Australia will hold 80 per cent equity in the proposed joint venture with Shandong Province-based explosives manufacturer, Weihai City Factory 711.