Orica Continues to Reshape Business Portfolio

21st May, 1998

Orica Limited (formerly ICI Australia) today announced the sale of its Valchem textile chemical business to Asia Pacific Specialty Chemicals Limited (APS).

The sale of the business, which has annual sales of approximately $10m, is further demonstration of Orica's strategy to focus the company around its nominated growth platforms of mining products and services, agricultural chemicals, consumer products and chemicals.

Orica managing director, Philip Weickhardt said: " Our corporate strategy is about active portfolio management - focussing on those areas where we have the highest potential for future value creation.

"While Valchem no longer closely fits our strategic aspirations, in APS it will have an owner with whom it has excellent synergy. I genuinely believe that the business and the people who have run it so diligently, have much more scope to flourish under APS."

The sale includes Valchem's manufacturing assets at Wangaratta in northern Victoria. It is expected that all current Valchem employees will transfer to APS.

APS is a listed public company involved in the production and distribution of industrial and consumer specialty chemicals, with sales of approximately $200m in 1997.

The sale is expected to be completed during June,1998.