Orica Grows Chemicals Trading Business Through Acquisition

23rd September, 2003

Orica Limited today announced the acquisition of the Fernz Specialty Chemical trading business from Nufarm Limited for $A 60 million.

Orica Managing Director and CEO, Mr. Malcolm Broomhead, said the acquisition of Fernz illustrates Orica’s commitment to investing in businesses that have the ability to deliver strong returns and increase shareholder value.

"Chemnet has a proven track record of delivering strong earnings growth and good economic profit. This acquisition allows Orica to further improve its chemicals trading business.

"We have been looking for an opportunity to grow this business and the Fernz business is a good fit. It is a quality business that can be enhanced with our existing business strengths. Synergy benefits will flow from the a more efficient distribution network, improved purchasing arrangements and supply chain logistics," he said.

· Chemnet is 100% owned by Orica Limited and is the leading supplier of chemical products and specialist services to industrial markets in Australia, New Zealand. Chemnet has an integrated network for supply of specialty chemicals to customers in a broad range of industries including agriculture, horticulture, building and construction, manufacturing, mining, paint and coatings, pulp and paper, food and beverage processing, water and effluent treatment, health and personal care, soaps and detergents and refrigeration and airconditioning.

· Fernz Specialty Chemicals is involved in the distribution of a wide range of chemicals in Australia and New Zealand in markets that are complementary to Chemnet’s existing markets including health care, foodstuffs, polymers, pulp and paper and water and waste water.