Orica Acquires Thai Interest in Latest Strategic Explosives Expansion

22nd May, 1998

Orica, the world's largest commercial explosives manufacturer, today announced it has purchased a controlling interest in Thailand's biggest explosives company, Chai International Development Company Limited (CID), in the company's latest move to add to its strategic explosives growth platform.

Orica managing director and chief executive officer Mr Philip Weickhardt said, "This acquisition blends Orica's advanced technology and operations experience with the knowledge-base and extensive networks which only an established local company can offer.

"The venture is of strategic importance as it provides a manufacturing base for the Indo-China region. Importantly, it offers Orica existing distribution channels and a partner with a proven track record in dealing with the local operating environment.

"CID has a long history in Thailand as a manufacturer and has a number of significant long-term customers in the local quarrying sector.

"We envisage a close ongoing relationship, with the five-member CID Board comprising three Orica representatives."

CID, which is headquartered in Bangkok, employs over 150 people and has sales of around A$12 million per annum.

The venture manufactures detonators, detonator cord and primers and features a state-of-art packaged explosives plant. The manufacturing site is located in Pak Chong, about 180km north-east of Bangkok.