Orica Continues Portfolio Rationalisation

5th February, 1998

Orica Limited today announced the sale of its Polypropylene Film (Propafilm) business to UCB Sidex (Australia) Pty Ltd, a wholly-owned subsidiary of UCB SA, a Belgium-based global film, pharmaceutical and chemical manufacturer.

Orica managing director Philip Weickhardt said: "The sale of our Propafilm business is consistent with our philosophy of actively managing our business portfolio to maximise shareholder wealth. This includes considering more natural owners for non-core businesses.

"This sale is also consistent with our strategy which included the sale of the Polypropylene business to Montell announced on 28 October last year."

UCB are a large global manufacturer of cellulose and polypropylene film and have been present in Australia in the flexible film market for many years, selling imported cellulose and polypropylene film. They recently announced the building of a polypropylene film manufacturing facility at Craigieburn in Victoria.

In Australia, the sale transfers all the plant and equipment, employees, trademarks and goodwill of the Orica Propafilm business at Deer Park in Melbourne.

The Propafilm business in Australia employs approximately 50 people with sales of approximately A$25 million a year.

The Propafilm sale is expected to be completed by the end of February 1998.

Orica Limited also announced the sale of its NZP (New Zealand Pharmaceuticals) business to a management buy out group. The business, which produces fine chemicals from animal extracts, has export sales of approximately NZ$14.5 million.

Total proceeds from these two divestments is approximately A$20 million.